A Reassessment of the New Economics of the Minimum Wage Literature with Monthly Data from the Current Population Survey

Abstract

We estimate the employment effects of federal minimum wage increases using monthly Current Population Survey (CPS) data from 1979 through 1997. We find that the empirical differences in the new minimum wage literature based on CPS data primarily can be traced to alternative methods of controlling for macroeconomic conditions. We argue that the macroeconomic controls commonly included in models where no employment impact is found are inappropriate. We consistently find a significant but modest negative relationship between minimum wage increases and teenage employment using alternative controls or allowing employer responses to the policy to occur with some delay.

Minimum wage effects in a developing country

“…We then interact the "voting cycle" with our regional dummies to construct our third measure of political support across regions. 5 The "election cycle" is defined as a linear time trend between two consecutive elections, but the results were robust to other functional forms (exponential, squared, square root and log). 6 As before, the "voting cycle" is defined as a linear time trend between any two minimum wage increases, but again the results were robust to other functional forms.…”

“…We use the timing of elections to define an "election cycle" (Carmignani, 2003). 5 Our basic assumption is that incentives for more generous minimum wage increases depend on the proximity of elections (Sobel, 1999). We then interact the "election cycle" with our regional dummies to construct our second measure of political support across regions.…”

The Business Impact Analysis of the Minimum Wage Valorisation

“…Kaitz index represents the ratio of minimum wage to average wage (Burkhauser et al 2000). The living minimum is the socially accepted minimum level of money income to ensure nutrition and other basic personal needs (Act No.…”

Conditions of Minimum Wage Indexation in Czech and Slovak Legislation in the Context of Business Economics

“…The Kaitz index is the ratio of the minimum wage to the average wage (Burkhauser, Couch, Wittenburg, 2000). The living minimum is defined by applicable Czech legislation as a socially recognized minimum level of financial income to cover sustenance and other basic personal needs (Collection of Laws, 2006).…”