Employment and distribution effects of the minimum wage

Slonimczyk, Fabián; Skøtt, Peter

doi:10.1016/j.jebo.2012.03.005

Cited by 17 publications

(7 citation statements)

References 30 publications

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“…Effects on employment and wage distributions have been extensively studied in the USA (e.g. Card and Krueger, , ; DiNardo, Fortin and Lemieux, ; Hirsch, Kaufman and Zelenska, ; Katz and Krueger, ; Lee, ; Slonimczyk and Skott, ) and in the UK (e.g. Dickens, Machin and Manning, ; Georgiadis, ; Machin and Manning, , ; Machin, Manning and Rahman, ; Metcalf, , ; Riley and Rosazza‐Bondibene, ; Stewart, , ).…”

Section: Selective Literature Reviewmentioning

confidence: 99%

The UK National Minimum Wage's Impact on Productivity

Rizov

Croucher

Lange

2016

British J of Management

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Low pay poses issues for managers internationally. We examine productivity in lowpaying sectors in Britain, since the introduction of the National Minimum Wage (NMW). We use a multiple channel analytical strategy, emphasizing the wage incentives channel and linking it to a model of unobserved productivity. We estimate firm-specific productivity measures and aggregate them to the level of low-paying sectors. Differencein-differences analysis illustrates that the NMW positively affected aggregate low-paying sector productivity. These findings highlight increased wage incentive effects with implications for management practice and public policy since 'living' wages may be productivity enhancing.

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Section: Selective Literature Reviewmentioning

confidence: 99%

The UK National Minimum Wage's Impact on Productivity

Rizov

Croucher

Lange

2016

British J of Management

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“…As a result, there is an increase in the proportion of low-skill jobs, a rising skill-premium, and increasing over-education. The extension of this model in Slonimczyk and Skott (2010) shows that a fall in the real value of the minimum wage can produce similar results.…”

Section: Mismatch Ratesmentioning

confidence: 69%

Earnings inequality and skill mismatch in the U.S.: 1973–2002

Slonimczyk

2011

J Econ Inequal

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This paper shows that skill mismatch is a significant source of inequality in real earnings in the U.S. and that a substantial fraction of the increase in wage dispersion during the period 1973-2002 was due to the increase in mismatch rates and mismatch premia. In 2000-2002 surplus and deficit qualifications taken together accounted for 4.3 and 4.6 percent of the variance of log earnings, or around 15 percent of the total explained variance. The dramatic increase in over-education rates and premia accounts for around 20 and 48 percent of the increase in the Gini coefficient during the 30 years under analysis for males and females respectively. The surplus qualification factor is important in understanding why earnings inequality polarized in the last decades.JEL classification: J31

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“…According to Slonimczyk and Skott (2012), the simultaneous increase in the relative wages and employment of high-skilled workers has been interpreted as evidence of skill-biased technical change. They show that a decline in the minimum wage can generate deterioration in the position of low-skilled workers, both in terms of wages and employment.…”

Section: Public Policy Hypothesismentioning

confidence: 99%

Is Inequality Designed or Preordained?

Levin-Waldman

2017

Sage Open

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The conventional explanation of raising income inequality is often referred to as the market forces hypothesis. Global forces have led to structural economic changes in which we now have a two-tiered economy: a highly skilled and highly paid economy at the top of the income distribution and a poorly skilled and poorly paid economy at the bottom of the income distribution. In recent years, however, the conventional theory has been called into question by what can be characterized as the public policy hypothesis that holds that it is because of public policy, both active and passive, that labor market institutions that served to bolster incomes of the poor and middle class deteriorated. As a consequence of this deterioration, income inequality has only risen. Through an examination of data from the Current Population Survey during the 2000s, this article seeks to address to what extent these two hypotheses are related. Although there is no question that the data does support the market forces hypothesis, the data also show that these forces may have been exacerbated by the deterioration of important labor market institutions.

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Employment and distribution effects of the minimum wage

Cited by 17 publications

References 30 publications

The UK National Minimum Wage's Impact on Productivity

The UK National Minimum Wage's Impact on Productivity

Earnings inequality and skill mismatch in the U.S.: 1973–2002

Is Inequality Designed or Preordained?

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