2,597 research outputs found

    Minimum Wages and Poverty

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    The principal justification for minimum wage legislation resides in improving the economic condition of low-wage workers. Most previous analyses of the distributional effects of minimum wages have been confined to simulation exercises employing rather restrictive assumptions that guarantee the conclusion that an increase in the minimum wage reduces poverty. In contrast, we adopt a more flexible "reduced-form" approach that links increases in both federal and state minima to contemporaneous changes in poverty rates. For the period 1983-96, we find indication of a poverty-reducing effect of minimum wages among older junior-high dropouts and among teenagers. --

    Minimum Wage Increases Under Straightened Circumstances

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    Do apparently large minimum wage increases in an environment of recession produce clearer evidence of disemployment effects than is typically observed in the new minimum wage literature? This paper augments the sparse literature on the most recent increases in the U.S. minimum wage, using three different data sets and the two main estimation strategies for handling geographically-disparate trends. The evidence is generally unsupportive of negative employment effects, still less of a 'recessionary multiplier.' Minimum wage workers seem to be concentrated in sectors of the economy for which the labor demand response to wage mandates is minimal.minimum wages, disemployment, earnings, low-wage sectors, geographically-disparate employment trends, recession

    The Effect of Minimum Wages on Labor Market Outcomes: County-Level Estimates from the Restaurant-and-Bar Sector

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    We use county-level data on employment and earnings in the restaurant-and-bar sector to evaluate the impact of minimum wage changes on low-wage labor markets. Our empirical approach is similar to the literature that has used state-level panel data to estimate minimum-wage impacts, with the difference that we focus on a particular sector rather than demographic group. Our estimated models are consistent with a simple competitive model of the restaurant-and-bar labor market in which supply-and-demand factors affect both the equilibrium outcome and the probability that a minimum wage will be binding in any given time period. Our evidence does not suggest that minimum wages reduce employment in the overall restaurant-and-bar sector, after controls for trends in sector employment at the county level are incorporated in the model. Employment in this sector appears to exhibit a downward long-term trend in states that have increased their minimum wages relative to states that have not, thereby predisposing fixed-effects estimates towards finding negative employment effects.

    The Effect of Minimum Wages on Wages and Employment: County-Level Estimates for the United States

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    We use county-level data on employment and earnings in the restaurant-and-bar sector to evaluate the impact of minimum wage changes on low-wage labor markets. Our empirical approach is similar to the literature that has used state-level panel data to estimate minimum-wage impacts, with the difference that we focus on a particular sector rather than demographic group. Our estimated models are consistent with a simple competitive model of the restaurant-and-bar labor market in which supply-and-demand factors affect both the equilibrium outcome and the probability that a minimum wage will be binding in any given time period. Our evidence does not suggest that minimum wages reduce employment in the overall restaurant-and-bar sector, after controls for trends in sector employment at the county level are incorporated in the model. Employment in this sector appears to exhibit a downward long-term trend in states that have increased their minimum wages relative to states that have not, thereby predisposing fixed-effects estimates towards finding negative employment effects.county-level data, wages and employment, minimum wages, spatial trends

    New Estimates of the Effects of Minimum Wages in the U.S. Retail Trade Sector

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    This paper examines the impact of minimum wages on earnings and employment in selected branches of the retail-trade sector, 1990-2005, using county-level data on employment and a panel regression framework that allows for county-specific trends in sectoral outcomes. We focus on particular subsectors within retail trade that are identified as particularly low-wage. We find little evidence of disemployment effects once we allow for geographic-specific trends. Rather, in many sectors the evidence suggests modest (but robust) positive employment effects. One explanation we consider for these ‘perverse’ effects is that minimum wages may have significant influences on product demand shifts.border county analysis, spatial trends, county-level data, wages and employment, minimum wages, unions, right-to-work states

    Minimum Wage Increases in a Soft U.S. Economy

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    Do apparently large minimum wage increases in an environment of straightened economic circumstances produce clearer evidence of disemployment effects than is typically reported in the new economics of the minimum wage? The present paper augments the sparse literature covering the very latest increases in the U.S. minimum wage, using three different data sets and the principal estimation strategies for handling geographically-disparate trends. Despite the seemingly more favorable milieu for identifying displacement effects, and although our treatment calls into question one well-received estimation strategy, our preferred specification generally fails to support a finding of negative employment effects. That is to say, minimum-wage workers are apparently concentrated in sectors of the economy for which the labor demand response to statutory wage hikes is minimal. Popular concern with a “recessionary multiplier” thus seems overdone.Minimum wages, Disemployment, Earnings, Low-wage sectors, Geographically-disparate employment trends, Recession

    Problems posing as solutions: Criticising pragmatism as a paradigm for mixed research

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    Mixed research is a methodology of growing importance both within and without education. This type of research forces researchers to reconcile conflicting ways of justifying and understanding research with results that have the potential to be forward pointing for all researchers. As mixed research has grown, mixed research has gained an increasingly solidified identity which is increasingly associated with the pragmatic paradigm. This paper seeks to describe and criticise pragmatism as a paradigm for mixed research. We identify six features of pragmatism which we argue render it unfit for purpose. 1. That it is a “paradigm of convenience” 2. That it takes a consequentialist view of good research. 3. That it takes a consequentialist view of truth. 4. That it assumes the answers to epistemic questions is “somewhere in the middle” 5. That it priorities the research question, rather than ontology or epistemology 6. That it treats itself as a prerequisite for mixed research. We argue that in prioritising flexibility and practicality over principles, pragmatism loses the ability to offer guidance to researchers. Furthermore, many of the issues with pragmatism arise from a conflation of paradigm and method. I.e., by thinking that there are quantitative and qualitative paradigms. We conclude that traditional paradigms are better served to act as a paradigm for mixed research

    Minimum Wages and Poverty

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    The principal justification for minimum wage legislation resides in improving the economic condition of low-wage workers. Most previous analyses of the distributional effects of minimum wages have been confined to simulation exercises employing rather restrictive assumptions that guarantee the conclusion that an increase in the minimum wage reduces poverty. In contrast, we adopt a more flexible "reduced-form" approach that links increases in both federal and state minima to contemporaneous changes in poverty rates. For the period 1983-96, we find indication of a poverty-reducing effect of minimum wages among older junior-high dropouts and among teenagers
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