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Full-Text Articles in Income Distribution
Estimating The Effects Of The Minimum Wage In A Developing Country: A Density Discontinuity Design Approach, Hugo Jales
Estimating The Effects Of The Minimum Wage In A Developing Country: A Density Discontinuity Design Approach, Hugo Jales
Center for Policy Research
This paper proposes a new framework to identify the effects of the minimum wage on the joint distribution of sector and wages in a developing country. I show that under reasonable assumptions, cross-sectional data on the worker's wage and sector can identify the joint distribution of the latent counterparts of these variables; that is, the sector status and wage that would prevail in the absence of the minimum wage. I apply the method in the “PNAD”, a nationwide representative Brazilian cross-sectional dataset for the years 2001 to 2009. The results indicate that the size of the informal sector is increased …
Who Benefits From A Minimum Wage Increase?, John W. Lopresti, Kevin J. Mumford
Who Benefits From A Minimum Wage Increase?, John W. Lopresti, Kevin J. Mumford
Upjohn Institute Working Papers
This paper addresses the question of how a minimum wage increase affects the wages of low-wage workers. Most studies assume that there is a simple mechanical increase in the wage for workers earning a wage between the old and the new minimum wage, with some studies allowing for spillovers to workers with wages just above this range. Rather than assume that the wages of these workers would have remained constant, this paper estimates how a minimum wage increase impacts a low-wage worker’s wage relative to the wage the worker would have if there had been no minimum wage increase. The …
Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West
Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West
Upjohn Institute Working Papers
The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment. We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels. We conduct simulations showing that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects. Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years. These effects are most pronounced for younger workers and in …