The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis

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

doi:10.26509/frbc-wp-200412

Cited by 32 publications

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“…34 Effects of mandated wage floors on wages above the floor are also sometimes interpreted as "ripple effects" to capture more direct effects on wages as, for example, employers preserve wage spreads between workers. 35 This same point helps explain why it is in no way contradictory to find that living wages reduce poverty (as reported below) but minimum wages do not (Wu et al, 2006;Neumark et al, 2005). The gains and losses from living wages may be of different magnitudes, affect different workers, and fall at different points in the distribution of family income than do the gains and losses from minimum wages.…”

Section: Discussionmentioning

confidence: 81%

The effects of living wage laws on low-wage workers and low-income families: What do we know now?

2012

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We provide updated evidence on the effects of living wage laws in U.S. cities, relative to the earlier research covering only the first six or seven years of existence of these laws. There are some challenges to updating the evidence, as the CPS data on which it relies changed geographic coding systems in the mid-2000s. The updated evidence is broadly consistent with the conclusions reached by prior research, including a recent review of that earlier evidence. Living wage laws reduce employment among the least-skilled workers they are intended to help. But they also increase wages for many of them. This implies that living wage laws generate both winners and losers among those affected by them. For broader living wage laws that cover recipients of business or financial assistance from cities, the net effects point to modest reductions in urban poverty. JEL codes: J23, J38

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Section: Discussionmentioning

confidence: 81%

The effects of living wage laws on low-wage workers and low-income families: What do we know now?

2012

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“…Our approach is similar to previous studies in other contexts, such as Neumark et al (2005) who study how the distribution of family incomes is impacted by minimum wages and find no evidence of an increased density of households just above the poverty line. In our analysis, we use block group data from the 1980, 1990 and 2000 censuses.…”

Section: Introductionmentioning

confidence: 71%

The effects of location-based tax policies on the distribution of household income: Evidence from the federal Empowerment Zone program

Reynolds

Rohlin

2015

Journal of Urban Economics

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“…Since the 1990s, studies have commonly used regression methods. Neumark et al (2005) apply a nonparametric method to estimate the minimum wage effect on income inequality, analyze several inequality measures (e.g., Gini coefficient, coefficient of variation, standard deviation, and Atkinson index) and find that a rise in the minimum wage can increase inequality.…”

Section: Literature On the Distributional Effect Of The Minimum Wagementioning

confidence: 99%

The Effects of the Minimum Wage on Earnings Inequality: Evidence from China

Lin¹,

Yun²

2016

Research in Labor Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACT The Effects of the Minimum Wage on Earnings Inequality: Evidence from ChinaThe minimum wage has been regarded as an important element of public policy for reducing poverty and inequality. Increasing the minimum wage is supposed to raise earnings for millions of low-wage workers and therefore lower earnings inequality. However, there is no consensus in the existing literature from industrialized countries regarding whether increasing the minimum wage has helped lower earnings inequality. China has recently exhibited rapid economic growth and widening earnings inequality. Since China promulgated new minimum wage regulations in 2004, the magnitude and frequency of changes in the minimum wage have been substantial, both over time and across jurisdictions. The growing importance of research on the relationship between the minimum wage and earnings inequality and its controversial nature have sparked heated debate in China, highlighting the importance of rigorous research to inform evidence-based policy making. We investigate the contribution of the minimum wage to the well-documented rise in earnings inequality in China over the period from 2004 to 2009 by using city-level minimum wage panel data and a representative Chinese household survey, and we find that increasing the minimum wage reduces inequality -by decreasing the earnings gap between the median and the bottom decile -over the analysis period.JEL Classification: J31, J38, O15, R23

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The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis

Cited by 32 publications

References 0 publications

The effects of living wage laws on low-wage workers and low-income families: What do we know now?

The effects of living wage laws on low-wage workers and low-income families: What do we know now?

The effects of location-based tax policies on the distribution of household income: Evidence from the federal Empowerment Zone program

The Effects of the Minimum Wage on Earnings Inequality: Evidence from China

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