The Wage and Employment Dynamics of Minimum Wage Workers

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The Wage and Employment Dynamics of Minimum Wage Workers

Author Info

William E. Even (Miami University)
David A. Macpherson (Florida State University)

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Abstract

This study uses 20 years of short panel data sets on minimum wage workers to examine the wage and employment dynamics of minimum wage workers. Compared to workers earning above the minimum wage, minimum wage workers differ substantially in several ways. First, minimum wage workers are much more likely to be new entrants and much more likely to exit the labor market. Second, changes in industry and occupation and access to job training are particularly important to improving the wages of minimum wage workers. Finally, we find evidence that many minimum wage workers are earning less than their potential wage temporarily because of other non-work circumstances that make higher paying jobs less attractive.

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Paper provided by EconWPA in its series Labor and Demography with number 0404007.

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Length: 37 pages
Date of creation: 22 Apr 2004
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Handle: RePEc:wpa:wuwpla:0404007

Note: Type of Document - pdf; pages: 37
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Article
- William E. Even & David A. Macpherson, 2003. "The Wage and Employment Dynamics of Minimum Wage Workers," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 676-690, January.

Find related papers by JEL classification:
J - Labor and Demographic Economics

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-04-25 (All new papers)
NEP-LAB-2004-04-25 (Labour Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Other versions:
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Other versions:
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Other versions:
- Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Peter R. Mueser & Kenneth R. Troske & Carolyn J. Heinrich, 2007. "The Role of Temporary Help Employment in Low-wage Worker Advancement," Working Papers 0719, Department of Economics, University of Missouri. [Downloadable!]
Other versions:
- Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2007. "The Role of Temporary Help Employment in Low-wage Worker Advancement," NBER Working Papers 13520, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2007. "The Role of Temporary Help Employment in Low-Wage Worker Advancement," NBER Chapters, in: Studies of Labor Market Intermediation National Bureau of Economic Research, Inc. [Downloadable!]

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