The Effects of Minimum Wages on the Distribution of Family Incomes: A Non-Parametric Analysis

Neumark, David; Schweitzer, Mark E.; Wascher, William

doi:10.3386/w6536

Cited by 50 publications

(43 citation statements)

References 18 publications

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“…But the opposite is also plausible. A comprehensive study covering state and federal minimum wage increases between 1986 and 1995 (welfare reforms in 1996 could confound analyses using data after 1995) finds that minimum wage increases do not reduce the number of poor families and may even increase it slightly [12]. The results are similar for families below 1.5 times the poverty line, sometimes referred to as a marker of near-poverty.…”

Section: World Of Laborsupporting

confidence: 66%

Employment effects of minimum wages

Neumark¹

2014

IZAWOL

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Section: World Of Laborsupporting

confidence: 66%

Employment effects of minimum wages

Neumark¹

2014

IZAWOL

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“…5 A few authors have exploited the rotating panel feature of household surveys such as PME to control for individual fixed e ects. Such models estimate the e ect of the minimum wage on labor force participation (Abowd et al, 2000) or on the number of hours worked (Neumark et al, 1998). In this study, we estimate the e ect of the minimum wage on the employment rate, which is only defined at the regional level.…”

Section: Model Specificationmentioning

confidence: 99%

Political Variables as Instruments for the Minimum Wage

Lemos¹

2005

Contributions in Economic Analysis &Amp; Policy

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A number of recent empirical studies have found no evidence that the minimum wage adversely affects employment. Explanations for such non-negative estimates include new theoretical approaches, empirical identification and data issues. In this paper we examine the robustness of such estimates to concerns about bias arising from the simultaneous determination of employment and the minimum wage. We use a number of novel political variables as instruments to control for this source of endogeneity. We exploit the personal characteristics of the politicians voting on minimum wage bills, their voting behavior and their electoral process. Our main conclusion is that the weak relationship between minimum wages and employment does not appear to be driven by endogeneity.

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“…4 Finally, while not specifically focusing on single mothers, studies of other lowskilled populations have generally found little evidence of poverty-reducing effects of minimum wage increases. Dynamic analyses of the effect of minimum wage hikes on household-specific flows into and out of poverty (Neumark & Wascher, 2001Neumark, Schweitzer, & Wascher, 2005) have found that while some low-skilled workers who remain employed after a minimum wage hike are moved out of poverty due to positive wage gains, other low-skilled workers are moved into poverty as a result of adverse employment or hours effects. Neumark and Wascher (2002) conclude that the net effect of minimum wage increases resembles income redistribution among low-income families, leaving many worse off.…”

Section: Introductionmentioning

confidence: 99%