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The Minimum Wage and the Great Recession: Evidence of Effects on the Employment and Income Trajectories of Low-Skilled Workers

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  • Jeffrey Clemens
  • Michael Wither

Abstract

The paper estimates the minimum wage's effects on low-skilled workers' employment and income trajectories. The increased binding minimum wage had significant, negative effects on the employment and income growth of targeted workers. Lost income reflects contributions from employment declines, increased probabilities of working without pay (i.e., an "internship" effect), and lost wage growth associated with reductions in experience accumulation.

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  • Jeffrey Clemens & Michael Wither, 2015. "The Minimum Wage and the Great Recession: Evidence of Effects on the Employment and Income Trajectories of Low-Skilled Workers," Working Papers id:6407, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:6407
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    More about this item

    Keywords

    low-skilled workers; employment; minimum wage; income; wage growth; minimum wage’s effects; approaches; Middle Class Earnings; income growth; working without pay; targeted workers.;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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