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Minimum wage careers?

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Author Info
William J. Carrington
Bruce C. Fallick

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Abstract

This paper investigates the extent to which people spend careers on minimum wage jobs. We find that a small but non-trivial number of NLSY respondents spend 25%, 50%, or even 75% of the first ten years of their career on minimum or near-minimum wage jobs. Workers with these minimum wage careers tend to be drawn from groups such as women, blacks, and the less-educated that are generally overrepresented in the low-wage population. The results indicate that lifetime incomes of some workers may be supported by a minimum wage. At the same time, these same groups would be disproportionately affected by any minimum wage-induced disemployment. The results suggest that minimum wage legislation has non-negligible effects on the lifetime opportunities of a significant minority of workers.

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Publisher Info
Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 1999-46.

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Date of creation: 1999
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Handle: RePEc:fip:fedgfe:1999-46

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Related research
Keywords: Minimum wage ; Labor supply;

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References listed on IDEAS
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  1. David Neumark & William Wascher, 1993. "Minimum wage effects on employment and school enrollment: evidence from policy variation in schooling quality and compulsory schooling laws," Working Paper Series / Economic Activity Section 133, Board of Governors of the Federal Reserve System (U.S.).
  2. Behrman, Jere R & Sickles, Robin C & Taubman, Paul, 1983. "The Impact of Minimum Wages on the Distributions of Earnings for Major Race-Sex Groups: A Dynamic Analysis," American Economic Review, American Economic Association, vol. 73(4), pages 766-78, September. [Downloadable!] (restricted)
  3. Hashimoto, Masanori, 1982. "Minimum Wage Effects on Training on the Job," American Economic Review, American Economic Association, vol. 72(5), pages 1070-87, December. [Downloadable!] (restricted)
  4. Chressanthis, George A & Grimes, Paul W, 1990. "Criminal Behaviour and Youth in the Labour Market: The Case of the Pernicious Minimum Wage," Applied Economics, Taylor and Francis Journals, vol. 22(11), pages 1495-1508, November.
  5. Johnson, William R & Browning, Edgar K, 1983. "The Distributional and Efficiency Effects of Increasing the Minimum Wage: A Simulation," American Economic Review, American Economic Association, vol. 73(1), pages 204-11, March. [Downloadable!] (restricted)
  6. Ralph E. Smith & Bruce Vavrichek, 1992. "The wage mobility of minimum wage workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(1), pages 82-88, October.
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