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The Effect of the Minimum Wage on Employment and Unemployment: A Survey

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  • Charles Brown
  • Curtis Gilroy
  • Andrew Kohen

Abstract

In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence of its effect on employment and unemployment. Our discussion of the theory emphasizes recent work using two-sector and heterogeneous-worker models. We then summarize and evaluate the large literature on employment and unemployment effects of the minimum on teenagers. Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment in low-wage industries and areas.

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File URL: http://www.nber.org/papers/w0846.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0846.

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Date of creation: Jan 1982
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Publication status: published as Brown, Charles; Gilroy, Curtis; and Kohen, Andrew. "The Effect of the Minimum Wage on Employment and Unemployment." Journal of Economic Literature, Vol. 20, No. 2 (June 1982), pp. 487-528.
Handle: RePEc:nbr:nberwo:0846

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