A Survey of the Effects of the Minimum Wage on Prices
AbstractIt is well established in the literature that minimum wage increases compress the wage distribution. Firms respond to these higher labour costs by reducing employment, reducing profits, or raising prices. While there are hundreds of studies on the employment effect of the minimum wage, there are merely a handful of studies on its profit effects, and only a couple of dozen studies on its price effects. Furthermore, a comprehensive survey on minimum wage price effects is not available in the literature. Given the policy relevance of this neglected issue, in this paper we summarise and critically compare the available evidence on the effects of minimum wages on prices.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 06/9.
Date of creation: May 2006
Date of revision:
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Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
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Web page: http://www2.le.ac.uk/departments/economics
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Other versions of this item:
- Sara Lemos, 2008. "A Survey Of The Effects Of The Minimum Wage On Prices," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 187-212, 02.
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
- NEP-CBA-2006-09-03 (Central Banking)
- NEP-LAB-2006-09-03 (Labour Economics)
- NEP-LTV-2006-09-03 (Unemployment, Inequality & Poverty)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Economists disagree on whether the minimum wage kills jobs. Why?
by Brad Plumer in Ezra Klein's Wonkblog on 2013-02-14 14:00:01
- Jonathan Wadsworth, 2009. "Did the national minimum wage affect UK prices?," LSE Research Online Documents on Economics 28677, London School of Economics and Political Science, LSE Library.
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"Efecto del cambio del salario mínimo en el precio de las comidas fuera del hogar en Colombia,"
BORRADORES DE ECONOMIA
006621, BANCO DE LA REPÚBLICA.
- Luis Eduardo Arango & Luz Karine Ardila & Miguel Ignacio Gömez, . "Efecto del cambio del salario mínimo en el precio de las comidas fuera del hogar en Colombia," Borradores de Economia 584, Banco de la Republica de Colombia.
- Mirko Draca & Stephen Machin & John Van Reenen, 2006.
"Minimum wages and firm profitability,"
LSE Research Online Documents on Economics
774, London School of Economics and Political Science, LSE Library.
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- Draca, Mirko & Machin, Steve & Van Reenen, John, 2006. "Minimum Wages and Firm Profitability," CEPR Discussion Papers 5456, C.E.P.R. Discussion Papers.
- Mirko Draca & Stephen Machin & John Van Reenen, 2006. "Minimum Wages and Firm Profitability," CEP Discussion Papers dp0715, Centre for Economic Performance, LSE.
- Mirko Draca & Stephen Machin & John Van Reenen, 2008. "Minimum Wages and Firm Profitability," NBER Working Papers 13996, National Bureau of Economic Research, Inc.
- Mirco Tonin, 2007.
"Minimum Wage and Tax Evasion: Theory and Evidence,"
IEHAS Discussion Papers
0701, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Mirco Tonin, 2009. "Minimumwage and tax evasion: theory and evidence," MNB Working Papers 2009/2, Magyar Nemzeti Bank (the central bank of Hungary).
- Mirco Tonin, 2007. "Minimum Wage and Tax Evasion: Theory and Evidence," William Davidson Institute Working Papers Series wp865, William Davidson Institute at the University of Michigan.
- Tonin, Mirco, 2011. "Minimum Wage and Tax Evasion: Theory and Evidence," IZA Discussion Papers 5660, Institute for the Study of Labor (IZA).
- Jonathan Wadsworth, 2010.
"Did the National Minimum Wage Affect UK Prices?,"
Institute for Fiscal Studies, vol. 31(1), pages 81-120, 03.
- John Schmitt, 2013. "Why Does the Minimum Wage Have No Discernible Effect on Employment?," CEPR Reports and Issue Briefs 2013-04, Center for Economic and Policy Research (CEPR).
- Margherita Comola & Luiz de Mello, 2009. "How Does Decentralised Minimum-Wage Setting Affect Unemployment and Informality?: The Case of Indonesia," OECD Economics Department Working Papers 710, OECD Publishing.
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