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Full-Text Articles in Labor Economics
Determining The Effect Of The Minimum Wage On Income Inequality, Benjamin S. Litwin
Determining The Effect Of The Minimum Wage On Income Inequality, Benjamin S. Litwin
Student Publications
Many recent studies have shown a significant increase to income inequality since the 1980s. One of the proposed methods for fixing this trend is to increase the minimum wage, since this policy would help those at the low end of the income spectrum to see economic growth. To analyze the effectiveness of this policy, we studied data from countries that are part of the Organization for Economic Development and Cooperation. By forming an econometric model to account for many factors that affect income inequality in nations around the world, including the real value of the minimum wage, we can determine …
Do Living Wages Alter The Effect Of The Minimum Wage On Income Inequality?, Benjamin S. Litwin
Do Living Wages Alter The Effect Of The Minimum Wage On Income Inequality?, Benjamin S. Litwin
Gettysburg Economic Review
Anker (2006) proposed a new methodology for calculating the living wage in countries around the world. By looking at OECD nations between 2000-2010, we look to see if countries with a national minimum wage higher than this living wage value see a notable difference in the effect of the minimum wage on income inequality. Our results show that countries with the minimum wage higher than the living wage value do see lower inequality, although there is a key value of the minimum wage, at which countries start to see disemployment effects that increase inequality.