IDEAS home Printed from
   My bibliography  Save this article

The Minimum Wage, Wage Subsidies, And Poverty


  • R. D. Husby


In an attempt to augment the lowest wages, the United States and several other countries utilize legal minimum wages. However, the minimum wage has potentially adverse employment effects. The analysis here suggests that an alternative policy that combines a minimum wage and a wage subsidy is superior to either by itself. Such a combination can assist the low wage worker, avoid disemployment effects, and maximize market efficiency. Copyright 1993 Western Economic Association International.

Suggested Citation

  • R. D. Husby, 1993. "The Minimum Wage, Wage Subsidies, And Poverty," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 30-38, July.
  • Handle: RePEc:bla:coecpo:v:11:y:1993:i:3:p:30-38

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Michael C. Barth & David H. Greenberg, 1971. "Incentive Effects of Some Pure and Mixed Transfer Systems," Journal of Human Resources, University of Wisconsin Press, vol. 6(2), pages 149-170.
    2. Jonathan Kesselman, 1969. "Labor-Supply Effects of Income, Income-Work, and Wage Subsidies," Journal of Human Resources, University of Wisconsin Press, vol. 4(3), pages 275-292.
    3. Ashenfelter, Orley & Smith, Robert S, 1979. "Compliance with the Minimum Wage Law," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 333-350, April.
    4. Katz, L.F. & Krueger, A.B, 1991. "The Effect Of The New Minimum Wage Law In A Low-Wage Labor Market," Harvard Institute of Economic Research Working Papers 1544, Harvard - Institute of Economic Research.
    5. repec:fth:prinin:280 is not listed on IDEAS
    6. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1, January.
    7. Richard V. Burkhauser & T. Aldrich Finegan, 1989. "The minimum wage and the poor: The end of a relationship," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 8(1), pages 53-71.
    8. Brown, Charles, 1988. "Minimum Wage Laws: Are They Overrated?," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 133-145, Summer.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Yenhuang Chen & Lihong Zhao, 2009. "Wage Subsidy and Sector-Specific Unemployment: A New Economic Geography Approach," Economics Bulletin, AccessEcon, vol. 29(1), pages 426-436.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:11:y:1993:i:3:p:30-38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.