In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence of its effect on employment and unemployment. Our discussion of the theory emphasizes recent work using two-sector and heterogeneous-worker models. We then summarize and evaluate the large literature on employment and unemployment effects of the minimum on teenagers. Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment in low-wage industries and areas.

Curtis Gilroy is a Senior Economist with the Minimum Wage Study Commission. The opinions expressed in this paper are those of the authors and do not necessarily reflect the official position of the institutions with which they are affiliated. We benefited from comments of Jacob Mincer and Finis Welch on an earlier version of the paper, and from the assistance of John Stinson in obtaining the data. Ann Levin and Nancy Zeitler provided helpful research assistance. The research reported here is part of the NBER'S research program in Labor Studies.

The Department of Defense has always sought a socially representative enlisted force, especially with respect to African American and Hispanic minorities. Ideally, in a democratic society a military force should be representative of the nation it defends. African American overrepresentation was a major concern during the first decade of the All-Volunteer Force (AVF), while Hispanics were underrepresented. During the 1980s black representation stabilized and Hispanics began to increase, especially with respect to enlistments. Starting in the 1990s, black representation began to decline, followed more recently by declines among Hispanics. This article examines changes in minority representation since the inception of the AVF in 1973 and argues that the wars in Afghanistan and Iraq have played a significant role in recent changes.

Curtis Gilroy is a Senior Economist with the Minimum Wage Study Commission. The opinions expressed in this paper are those of the authors and do not necessarily reflect the official position of the institutions with which they are affiliated. We benefited from comments of Jacob Mincer and Finis Welch on an earlier version of the paper, and from the assistance of John Stinson in obtaining the data. Ann Levin and Nancy Zeitler provided helpful research assistance. The research reported here is part of the NBER'S research program in Labor Studies.

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