Who Minimum Wage Increases Bite: An Analysis Using Monthly Data from the SIPP and the CPS

Burkhauser, Richard V.; Couch, Kenneth A.; Wittenburg, David

doi:10.2307/1061611

Cited by 64 publications

(35 citation statements)

References 15 publications

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“…A 10 percent increase in the minimum wage is associated with an 8.8 percent reduction in employment for single mothers who had not completed high school. This estimated employment elasticity is quite large compared to elasticities found in the literature on teenagers, which tend to range from Ϫ0.1 to Ϫ0.3 (Neumark & Wascher, 2007), but is comparable to estimates obtained for non-high school graduates, which recent studies have placed between Ϫ0.8 and Ϫ0.9 (Burkhauser, Couch, & Wittenburg, 2000a, 2000bNeumark, 2007).…”

Section: Employment Hours and Income Effectssupporting

confidence: 69%

Minimum wages and the economic well‐being of single mothers

Sabia

2008

J Policy Anal Manage

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Section: Employment Hours and Income Effectssupporting

confidence: 69%

Minimum wages and the economic well‐being of single mothers

Sabia

2008

J Policy Anal Manage

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“…Several studies directly case of greater effort, optimal selection of such counterbalancing factors is already available to employers through voluntarily raising wages, and thus, mandated minimum wages can be expected to raise unit labor costs overall, which must be paid for by some sourceðsÞ. critique the approaches used to derive the "new" conclusions ðe.g., Deere, Murphy, and Welch 1995;Kim and Taylor 1995;Welch 1995;Burkhauser, Couch, and Wittenburg 2000;Neumark and Wascher 2000Þ. Others studies confirm the consensus view of the 1980s and find negative employment effects primarily concentrated among younger workers ðe.g., Currie and Fallick 1996;Neumark 2001;Williams and Mills 2001;Neumark and Wascher 2002;Neumark, Schweitzer, and Wascher 2004Þ.…”

Section: A Reducing Employmentmentioning

confidence: 95%

How Effective Is the Minimum Wage at Supporting the Poor?

MaCurdy¹

2015

Journal of Political Economy

136

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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to Journal of Political Economy.This study investigates the antipoverty efficacy of minimum wage policies. Proponents of these policies contend that employment impacts are negligible and suggest that consumers pay for higher labor costs through imperceptible increases in goods prices. Adopting this empirical scenario, the analysis demonstrates that an increase in the national minimum wage produces a value-added tax effect on consumer prices that is more regressive than a typical state sales tax and allocates benefits as higher earnings nearly evenly across the income distribution. These income-transfer outcomes sharply contradict portraying an increase in the minimum wage as an antipoverty initiative.

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“…First, because of their potential to be affected by minimum wage hikes, non-teenage less-educated individuals have increasingly drawn attention from researchers. For instance, Sabia (2008) explores the effect of minimum wage increases on less-educated single mothers in their prime-age working years, and Burkhauser, Couch, andWittenburg (2000a, 2000b) examine less-educated individuals in their twenties. Second, as Neumark and Wascher note, older low-wage workers may be of more policy relevance:…”

Section: Datamentioning

confidence: 99%

Are the Effects of Minimum Wage Increases Always Small? New Evidence from a Case Study of New York State

Sabia¹,

Burkhauser²,

Hansen³

2012

ILR Review

Self Cite

108

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The authors estimate the effect of the 2004-6 New York State (NYS) minimum wage increase from $5.15 to $6.75 per hour on the employment rates of 16-to 29-year-olds who do not have a high school diploma. Using data drawn from the 2004 and 2006 Current Population Survey, they employ difference-in-difference estimates to show that the NYS minimum wage increase is associated with a 20.2% to 21.8% reduction in the employment of less-skilled, less-educated workers, with the largest effects on those aged 16 to 24. Their estimates imply a median employment elasticity with respect to the minimum wage of around -0.7, large relative to previous researchers' estimates. The authors' findings are robust to their choice of geo graphically proximate comparison states, the use of a more highly skilled within-state comparison group, and a synthetic control design approach. Moreover, their results provide plausible evidence that state minimum wage increases can have substantial adverse labor demand effects for low-skilled individuals that are outside previous elasticity estimates, ranging from -0.1 to -0.3.

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Who Minimum Wage Increases Bite: An Analysis Using Monthly Data from the SIPP and the CPS

Cited by 64 publications

References 15 publications

Minimum wages and the economic well‐being of single mothers

Minimum wages and the economic well‐being of single mothers

How Effective Is the Minimum Wage at Supporting the Poor?

Are the Effects of Minimum Wage Increases Always Small? New Evidence from a Case Study of New York State

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