Analysis of the Distribution of Subminimum Wage Rates

Abstract

Over the last decade, there has been an increase in the discussion of minimum wage policy in the field of economics. This has also been reflected in increased wage rates in a variety of states as an attempt to increase standard of living and purchasing power of low-skilled workers. Thus, the minimum wage rate debate can have drastic implications on a multitude of economic variables. My research question asks whether subminimum wage rates are evenly distributed or “bunched”, which will determine the market power that firms have over low-skilled labor. My research will analyze an implication of the minimum wage debate, the market power of firms over low-skilled workers, based on the distribution of subminimum wage rates

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