Employment effects of minimum wages

Neumark, David

doi:10.15185/izawol.6

Cited by 23 publications

(15 citation statements)

References 14 publications

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“…One (latent) factor that has received some attention is variation in analysis quality (Neumark, , ; Neumark and Wascher, ,; SD, section 6.2.2). To the extent that all estimates in a single analysis similarly reflect that study's quality, indicator variables for each study can account for it.…”

Section: Applying Meta‐analysis To the Minimum Wage Literaturementioning

confidence: 99%

“…All of these elements contribute to failures in the iid assumption, both independence and homogeneity, and ideally, should be modeled to understand the source of different estimates of the effect of interest. 20 One (latent) factor that has received some attention is variation in analysis quality (Neumark, 2014(Neumark, , 2015Wascher, 1998, 2007; SD, section 6.2.2). To the extent that all estimates in a single analysis similarly reflect that study's quality, indicator variables for each study can account for it.…”

Section: Modeling (Uncategorized) Failures Of the Iid Assumptionmentioning

confidence: 99%

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15 Years of Research on US Employment and the Minimum Wage

Wolfson

Belman

2019

Labour

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Statistical analysis of the minimum wage and employment has been very active for the last quarter century, including more than 37 studies of US data since the December 2000 AER exchange involving Card, Krueger, Neumark and Wascher. In this meta‐analysis of the 37 that report results suitable for this technique, the most important finding is a considerable shift toward the origin in the ‘consensus range’: from the interval [−0.3, −0.1] to [−0.13, −0.07]. The minimum wage has negative employment effects, but these have become notably smaller and are largely localized to teenagers.

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Section: Applying Meta‐analysis To the Minimum Wage Literaturementioning

confidence: 99%

Section: Modeling (Uncategorized) Failures Of the Iid Assumptionmentioning

confidence: 99%

15 Years of Research on US Employment and the Minimum Wage

Wolfson

Belman

2019

Labour

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“…Economic theory, however, suggests employers are most likely to respond with some reductions to employee hours and headcount. Although debates about methods and data persist, this literature generally finds small negative effects on earnings and employment in the aggregate (Aaronson and French 2006; Belman and Wolfson 2014; Neumark 2014). The modest size of these employment effects support claims that higher minimum wages do not lead employers to dramatically shift employment arrangements or business practice (von Wilpert 2017).…”

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confidence: 99%

Employer Responses to a City-Level Minimum Wage Mandate: Early Evidence from Seattle

Romich

Allard

Obara

et al. 2018

Urban Affairs Review

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A growing number of cities and counties have recently raised their minimum wages. How employers respond to these mandates provides insight into the impact such policies might have on workers and local labor market. Drawing on two survey waves tracking initial responses to Seattle’s $15 Minimum Wage Ordinance by 439 employers with low-wage workers, we show how employers adjusted to higher wages. Most commonly, firms raised prices (56% reported this); smaller percentages reduced employee headcount or hours, limited internal wage progression, or took other measures. Single-site Seattle employers responded similarly to those with multiple sites. Food and accommodation sector employers were more likely to raise prices than firms in other sectors. Relative to other ownership structures, franchises disproportionately reported reducing their workforces. Very few employers reported withdrawing from Seattle. Overall, initial employer responses to this city-level minimum wage law align with predictions from the literature, findings that highlight trade-offs that policy makers must consider in future local wage regulation.

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“…For empirical evidence on the consequences of temporary work employment on subsequent labor market outcomes, see Booth et al (2002), Ichino et al (2008), and Autor and Houseman (2010). For works on the impact of labor market institutions on employment, see also Card and Krueger (1994), Dube et al (2010), Allegretto et al (2011, and Neumark (2014).…”

Section: Background Information On the Italian Labor Marketmentioning

confidence: 99%

How Do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession

2016

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We study wage adjustment during the recent crisis in Italy using a unique dataset on immigrant workers that includes those employed in formal and informal sector. We find that before the crisis immigrants' wages in the formal and informal sectors moved in parallel (with a 15% premium in the formal labor market). During the crisis, however, formal wages did not adjust down while wages in the unregulated informal labor market fell so that by 2013 the gap had grown to 32%. The difference was particularly salient for workers in occupations where the minimum wage is likely to be binding, and in "simple" occupations where there is high substitutability between immigrant and native workers. Calibrating a simple partial equilibrium model of spillovers between formal and informal markets, we find that less than 10% of workers who lost a formal job during the crisis move to the informal sector. We also find that if the formal sector wages were fully flexible, the decline in formal employment would be in the range of 1.5-4.5%-much lower than 16% decline that we observe in the data. (JEL E24, E26, J31, J61)

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Employment effects of minimum wages

Cited by 23 publications

References 14 publications

15 Years of Research on US Employment and the Minimum Wage

15 Years of Research on US Employment and the Minimum Wage

Employer Responses to a City-Level Minimum Wage Mandate: Early Evidence from Seattle

How Do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession

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