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The effects of minimum wages throughout the wage distribution

Author

Listed:
  • David Neumark
  • Mark E. Schweitzer
  • William L. Wascher

Abstract

Workers initially earning near the minimum wage are adversely affected by minimum wage increases, while, not surprisingly, higher-wage workers are little affected. Although the pay of low-wage workers increases, their hours and employment decline, and the combined effect of these changes is a decline in earned income.

Suggested Citation

  • David Neumark & Mark E. Schweitzer & William L. Wascher, 1999. "The effects of minimum wages throughout the wage distribution," Working Paper 9919, Federal Reserve Bank of Cleveland, revised Feb 2000.
  • Handle: RePEc:fip:fedcwp:9919
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Pablo Fajnzylber, 2001. "Minimum Wage Effects Throughout the Wage Distribution: Evidence from Brazil's Formal and Informal Sectors," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 098, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Pablo Fajnzylber, 2001. "Minimum wage effects throughout the wage distribution: evidence from Brazil’s formal and informal sectors," Textos para Discussão Cedeplar-UFMG td151, Cedeplar, Universidade Federal de Minas Gerais.
    3. Felipe Balmaceda, 2008. "Firm-Provided Training and Labor Market Policies," Documentos de Trabajo 252, Centro de Economía Aplicada, Universidad de Chile.
    4. Claudio Montenegro & Carmen Pagés, 2005. "Who Benefits from Labor Market Regulations? Chile 1960-1998," Central Banking, Analysis, and Economic Policies Book Series,in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.), Labor Markets and Institutions, edition 1, volume 8, chapter 4, pages 077-114 Central Bank of Chile.
    5. Fairris, David & Popli, Gurleen & Zepeda, Eduardo, 2006. "Minimum wages and wage structure in Mexico," MPRA Paper 400, University Library of Munich, Germany, revised 2006.
    6. T. H. Gindling & Katherine Terrell, 2004. "The Effects of Multiple Minimum Wages Throughout the Labor Market," William Davidson Institute Working Papers Series 2004-701, William Davidson Institute at the University of Michigan.
    7. Kosali Ilayperuma Simon & Robert Kaestner, 2003. "Do Minimum Wages Affect Non-wage Job Attributes? Evidence on Fringe Benefits and Working Conditions," NBER Working Papers 9688, National Bureau of Economic Research, Inc.
    8. Wu, Ximing & Perloff, Jeffrey M. & Golan, Amos, 2002. "Effects of Government Policies on Income Distribution and Welfare," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt74r4h1fc, Department of Agricultural & Resource Economics, UC Berkeley.
    9. Gindling, T.H. & Terrell, Katherine, 2007. "The effects of multiple minimum wages throughout the labor market: The case of Costa Rica," Labour Economics, Elsevier, vol. 14(3), pages 485-511, June.
    10. Mark B. Stewart & Joanna K. Swaffield, 2008. "The Other Margin: Do Minimum Wages Cause Working Hours Adjustments for Low-Wage Workers?," Economica, London School of Economics and Political Science, vol. 75(297), pages 148-167, February.
    11. Strobl, Eric & Walsh, Frank, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Economics Letters, Elsevier, vol. 94(1), pages 83-89, January.
    12. ArnabK. Basu & NancyH. Chau & Ravi Kanbur, 2010. "Turning a Blind Eye: Costly Enforcement, Credible Commitment and Minimum Wage Laws," Economic Journal, Royal Economic Society, vol. 120(543), pages 244-269, March.
    13. Marit Hinnosaar & Tairi Room, 2003. "The impact of minimum wage on the labour market in Estonia: an empirical analysis," Bank of Estonia Working Papers 2003-8, Bank of Estonia, revised 12 Oct 2003.
    14. Omar Rilver Velasco Portillo & Manuela Puente Beccar, 2016. "The Impact Of Wage Policy On The Distribution Of Labor Income And Poverty In Bolivia," Volúmenes de los Cuadernos de Investigacion Economica Boliviana publicados por el Ministerio de Economía y Finanzas Públicas 2016-4, Ministerio de Economía y Finanzas Publicas de Bolivia.
    15. Daniel Fairchild, 2004. "Does the minimum wage help the poor?," Forum for Social Economics, Springer;The Association for Social Economics, vol. 34(1), pages 31-42, September.
    16. Eric Strobl & Frank Walsh, 2010. "The minimum wage and hours per worker," Working Papers 201028, School of Economics, University College Dublin.
    17. Eric Strobl & Frank Walsh, 2007. "The ambiguous effect of minimum wages on workers and total hours," Working Papers 200714, School of Economics, University College Dublin.
    18. repec:eee:ecmode:v:70:y:2018:i:c:p:174-185 is not listed on IDEAS
    19. Andalón, Mabel & Pagés, Carmen, 2008. "Minimum Wages in Kenya," IZA Discussion Papers 3390, Institute for the Study of Labor (IZA).
    20. Céspedes, Nikita, 2006. "Efectos del salario mínimo en el mercado laboral peruano," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 13.
    21. Diego Angel-Urdinola, 2008. "Can a minimum wage increase have an adverse impact on inequality? Evidence from two Latin American economies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(1), pages 57-71, March.
    22. Vincze, János & Halpern, László & Koren, Miklós & Kőrösi, Gábor, 2004. "A minimálbér költségvetési hatásai
      [The budgetary effects of the minimum wage]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 325-345.
    23. Jesús Palomino Samaniego, 2011. "Efectos Del Incremento De La Remuneracion Mínima Vital Sobre El Empleo Y Los Ingresos Laborales," Documentos de Trabajo / Working Papers 2011-313, Departamento de Economía - Pontificia Universidad Católica del Perú.
    24. Del Valle, Marielle, 2009. "Impacto del ajuste de la Remuneración Mínima Vital sobre el empleo y la informalidad," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 16, pages 83-102.

    More about this item

    Keywords

    Minimum wage;

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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