Minimum Wages and Poverty

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Minimum Wages and Poverty

Textbook analysis tells us that in a competitive labor market, the introduction of a minimum wage above the competitive equilibrium wage will cause unemployment. This paper makes two contributions to the basic theory of the minimum wage. First, we analyze the effects of a higher minimum wage in terms of poverty rather than in terms of unemployment. Second, we extend the standard textbook model ...

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Reviews Minimum Wages and Poverty: An Evaluation of Policy

One of the problems with the economic analysis of social policy is the tendency of researchers to consider policies in isolation from one another. Although Econlit contains over 2000 articles and books on minimum wages, and over 150 on Earned Income Tax Credits (EITCs), only 20 articles or books deal with the two topics together. Although this ‘silo’ approach encourages in-depth analysis of ind...

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Minimum Wages and Poverty : An Evaluation of Policy

One of the problems with the economic analysis of social policy is the tendency of researchers to consider policies in isolation from one another. Although Econlit contains over 2000 articles and books on minimum wages, and over 150 on Earned Income Tax Credits (EITCs), only 20 articles or books deal with the two topics together. Although this ‘silo’ approach encourages in-depth analysis of ind...

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Minimum Wages and Poverty: Will a $9.50 Federal Minimum Wage Really Help the Working Poor?

Using data drawn from the March Current Population Survey, we find that state and federal minimum wage increases between 2003 and 2007 had no effect on state poverty rates. When we then simulate the effects of a proposed federal minimum wage increase from $7.25 to $9.50 per hour, we find that such an increase will be even more poorly targeted to the working poor than was the last federal increa...

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Minimum Wages and Employment

We review the burgeoning literature on the employment effects of minimum wages – in the United States and in other countries – that was spurred by the new minimum wage research beginning in the early 1990s. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wag...

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ژورنال

عنوان ژورنال: ILR Review

سال: 1999

ISSN: 0019-7939,2162-271X

DOI: 10.1177/001979399905200302