An Evaluation of the International Evidence on the Employment Effects of Minimum Wage Legislation

Seltzer, Andrew

doi:10.1111/1467-8462.00020

Cited by 9 publications

(6 citation statements)

References 12 publications

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“…He also argues that lower minimum rates of pay will not necessarily lead to greater levels of employment and lower levels of unemployment. Of course the study is dragged out in support of this contention, without any reference to the criticisms of this study such as those of Welch (1995) andHamermesh (1995) or the questioning of the relevance of the US evidence to the Australian labour market (Seltzer, 1997).…”

Section: Solutions To Unemfloyment Crisismentioning

confidence: 80%

Untitled

2000

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Section: Solutions To Unemfloyment Crisismentioning

confidence: 80%

Untitled

2000

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“…Even if Cqrd and Krueger (1994) are correct in their assessment for the US labour market, it is questionable how relevant their results are to the wage debate in Australia. Seltzer (1997) reviews the arguments. The main issue appears to be the different degrees to which award wages are binding in the particular labour market, with minimum/ award wages being binding for relatively more workers in Australia than in the US.…”

Section: Labour Demandmentioning

confidence: 99%

“…While some commentators in Australia have used Card and Krueger's (1994) research in support of their high wage policy prescriptions (see, for example, Harcourt 1997), most researchers argue that the employment effects of high wages, including minimum wages, are negative. Seltzer's (1997) review is most informative on this issue.…”

Section: Labour Demandmentioning

confidence: 99%

Australia's Unemployment Problem

Miller

2000

Economic Record

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A number of Australian studies have provided microeconomic and macroeconomic perspectives on the causes of, and solutions to, Australia's unemployment problem. This paper provides an evaluation of these studies. Several important findings can be noted. First, from the cross‐sectional studies economists have gained a good understanding of the factors contributing to a high probability of unemployment. Effective use is currently being made of this information. Second, there is general consensus from the time‐series studies regarding the estimates of the aggregate labour demand wage and output elasticities. In addition, it has been widely acknowledged that lower real wages and economic growth would help reduce the high rate of unemployment. Despite the information available we are making slow progress towards reducing the unemployment rate. This may be due to political reasons or because we are unsure of how to deliver the wage cuts and faster rates of economic growth presented as solutions to the unemployment problem.

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“…Their empirical work in the fast-food industry in the United States led them to suggest that an increase in the minimum wage might even lead to an increase in employment. Their work has been heavily criticised on theoretical and empirical grounds by such authors as Welch (1995), Neumark and Wascher (1995) and Hamermesh (1995) and it seems that Ôthe pendulum is swinging back in favour of those who believe that the minimum wage does reduce employment on the marginÕ (Seltzer 1997). Seltzer has also pointed out that the applicability of the US evidence to Australia is questionable:…”

Section: What About the Wages Of The Lowmentioning

confidence: 99%