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Journal Article

Minimum Wage Effects throughout the Wage Distribution

David Neumark, Mark Schweitzer and William Wascher
The Journal of Human Resources
Vol. 39, No. 2 (Spring, 2004), pp. 425-450
DOI: 10.2307/3559021
Stable URL: http://www.jstor.org/stable/3559021
Page Count: 26
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Minimum Wage Effects throughout the Wage Distribution
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Abstract

This paper provides evidence on a wide set of margins along which labor markets can adjust in response to increases in the minimum wage, including wages, hours, employment, and ultimately labor income. Not surprisingly, the evidence indicates that low-wage workers are most strongly affected, while higher-wage workers are little affected. Workers who initially earn near the minimum wage experience wage gains. Nevertheless, their hours and employment decline, and the combined effect of these changes on earned income suggests adverse consequences, on net, for low-wage workers.

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