Download or read book Heterogeneous Employment Effects of Minimum Wage Policies written by Aleksandra Majchrowska and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Minimum Wages and Firm Employment written by Yi Huang and published by International Monetary Fund. This book was released on 2014-10-16 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides the first systematic study of how minimum wage policies in China affect firm employment over the 2000-2007 periods. Using a novel dataset of minimum wage regulations across more than 2,800 counties matched with firm-level data, we investigate both the effect of the minimum wage and its policy enforcement tightening in 2004. A dynamic panel (difference GMM) estimator is combined with a “neighbor-pairs-approach” to control for unobservable heterogeneity common to “border counties” that are subject to different minimum wage changes. We show that minimum wage increases have a significant negative impact on employment, with an estimated elasticity of -0.1. Furthermore, we find a heterogeneous effect of the minimum wage on employment which depends on the firm's wage level. Specifically, the minimum wage has a greater negative impact on employment in low-wage firms than in high-wage firms. Our results are robust for different treatment groups, sample attrition correction, and placebo tests.

Download or read book The Impact of a Minimum Wage Increase on Hours Worked written by Paul Redmond and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A minimum wage increase could lead to adverse employment effects for certain sub-groups of minimum wage workers, while leaving others unaffected. This heterogeneity could be overlooked in studies that examine the overall population of minimum wage workers. In this paper, we test for heterogeneous effects of a minimum wage increase on the hours worked of minimum wage employees in Ireland. For all minimum wage workers, we find that a ten percent increase in the minimum wage leads to a one-hour reduction in weekly hours worked, equating to an hours elasticity of approximately -0.3. However, for industry workers and those in the accommodation and food sector, the impact is larger, with an elasticity of -0.8. We also find a negative impact on the hours worked among men on minimum wage, with no significant effect for women. In line with suggestions from the recent literature, our study uses administrative wage data to accurately identify those in receipt of minimum wage, while also studying the dynamic impact on hours worked over multiple time periods using a fully flexible difference-in-differences estimator.

Download or read book Do Minimum Wages Really Reduce Teen Employment Accounting for Heterogeneity and Selectivity in State Panel Data written by Sylvia A. Allegretto and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional estimates that often find minimum wage disemployment effects include controls for state unemployment rates and state- and year-fixed effects. Using CPS data on teens for the period 1990-2009, we show that such estimates fail to account for heterogeneous employment patterns that are correlated with selectivity among states with minimum wages. As a result, the estimates are often biased and not robust to the source of identifying variation. Including controls for long-term growth differences among states and for heterogeneous economic shocks renders the employment and hours elasticities indistinguishable from zero and rules out any but very small disemployment effects. Dynamic evidence further shows the nature of bias in traditional estimates, and it also rules out all but very small negative long-run effects. In addition, we do not find evidence that employment effects vary in different parts of the business cycle. We also consider predictable versus unpredictable changes in the minimum wage by looking at the effects of state indexation of the minimum wage.

Download or read book The Employment Effects of Technological Change written by Jens Rubart and published by Springer Science & Business Media. This book was released on 2007-04-04 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: The labor markets of important OECD countries show a similar picture: high wages and low unemployment for skilled workers and low wages but high unemployment for low-skilled workers. During the last 10 years this fact has been studied under the hypothesis of "skill-biased technological change" within the context of endogenous growth models. Recent research, however, has shown that the employment and wage differentials vary at business cycle frequencies.This book provides an empirical and theoretical examination of the short- and medium run impacts of technological advances on the employment and wages of workers which differ in their earned educational degree. Furthermore, by introducing labor market frictions and wage setting institutions the author shows the importance of such imperfections in order to replicate empirical facts. Due to the introduction of employment protection mechanisms and minimum wages the analysis accounts for key facts of continental European labor markets.

Download or read book The Minimum Wage and Labor Market Outcomes written by Christopher J. Flinn and published by MIT Press. This book was released on 2011-02-04 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: The introduction of a search and bargaining model to assess the welfare effects of minimum wage changes and to determine an “optimal” minimum wage. In The Minimum Wage and Labor Market Outcomes, Christopher Flinn argues that in assessing the effects of the minimum wage (in the United States and elsewhere), a behavioral framework is invaluable for guiding empirical work and the interpretation of results. Flinn develops a job search and wage bargaining model that is capable of generating labor market outcomes consistent with observed wage and unemployment duration distributions, and also can account for observed changes in employment rates and wages after a minimum wage change. Flinn uses previous studies from the minimum wage literature to demonstrate how his model can be used to rationalize and synthesize the diverse results found in widely varying institutional contexts. He also shows how observed wage distributions from before and after a minimum wage change can be used to determine if the change was welfare-improving. More ambitiously, and perhaps controversially, Flinn proposes the construction and formal estimation of the model using commonly available data; model estimates then enable the researcher to determine directly the welfare effects of observed minimum wage changes. This model can be used to conduct counterfactual policy experiments—even to determine “optimal” minimum wages under a variety of welfare metrics. The development of the model and the econometric theory underlying its estimation are carefully presented so as to enable readers unfamiliar with the econometrics of point process models and dynamic optimization in continuous time to follow the arguments. Although most of the book focuses on the case where only the unemployed search for jobs in a homogeneous labor market environment, later chapters introduce on-the-job search into the model, and explore its implications for minimum wage policy. The book also contains a chapter describing how individual heterogeneity can be introduced into the search, matching, and bargaining framework.

Download or read book The Employment Effect of a Minimum Wage Law in a Shirking Model with Heterogeneous Workers written by Zhongzheng Lin and published by . This book was released on 1998 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effects of the Minimum Wage on Employment written by Marvin H. Kosters and published by American Enterprise Institute. This book was released on 1996 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Clinton administration has claimed its proposal to increase the minimum wage would not affect employment; other research supports that a higher minimum wage means fewer jobs.

Download or read book Minimum Wages written by David Neumark and published by MIT Press. This book was released on 2008 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive review of evidence on the effect of minimum wages on employment, skills, wage and income distributions, and longer-term labor market outcomes concludes that the minimum wage is not a good policy tool.

Download or read book The Contribution of the Minimum Wage to U S Wage Inequality Over Three Decades written by David H. Autor and published by DIANE Publishing. This book was released on 2010 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: We reassess the effect of state and federal minimum wages on U.S. earnings inequality using two additional decades of data and far greater variation in minimum wages than was available to earlier studies. We argue that prior literature suffers from two sources of bias and propose an IV strategy to address both. We find that the minimum wage reduces inequality in the lower tail of the wage distribution (the 50/10 wage ratio), but the impacts are typically less than half as large as those reported elsewhere and are almost negligible for males. Nevertheless, the estimated effects extend to wage percentiles where the minimum is nominally non-binding, implying spillovers. However, we show that spillovers and measurement error (absent spillovers) have similar implications for the effect of the minimum on the shape of the lower tail of the measured wage distribution. With available precision, we cannot reject the hypothesis that estimated spillovers to non-binding percentiles are due to reporting artifacts. Accepting this null, the implied effect of the minimum wage on the actual wage distribution is smaller than the effect of the minimum wage on the measured wage distribution.

Download or read book Myth and Measurement written by David Card and published by Princeton University Press. This book was released on 2015-12-22 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: From David Card, winner of the Nobel Prize in Economics, and Alan Krueger, a provocative challenge to conventional wisdom about the minimum wage David Card and Alan B. Krueger have already made national news with their pathbreaking research on the minimum wage. Here they present a powerful new challenge to the conventional view that higher minimum wages reduce jobs for low-wage workers. In a work that has important implications for public policy as well as for the direction of economic research, the authors put standard economic theory to the test, using data from a series of recent episodes, including the 1992 increase in New Jersey's minimum wage, the 1988 rise in California's minimum wage, and the 1990–91 increases in the federal minimum wage. In each case they present a battery of evidence showing that increases in the minimum wage lead to increases in pay, but no loss in jobs. A distinctive feature of Card and Krueger's research is the use of empirical methods borrowed from the natural sciences, including comparisons between the "treatment" and "control" groups formed when the minimum wage rises for some workers but not for others. In addition, the authors critically reexamine the previous literature on the minimum wage and find that it, too, lacks support for the claim that a higher minimum wage cuts jobs. Finally, the effects of the minimum wage on family earnings, poverty outcomes, and the stock market valuation of low-wage employers are documented. Overall, this book calls into question the standard model of the labor market that has dominated economists' thinking on the minimum wage. In addition, it will shift the terms of the debate on the minimum wage in Washington and in state legislatures throughout the country. With a new preface discussing new data, Myth and Measurement continues to shift the terms of the debate on the minimum wage.

Download or read book The Heterogeneous Effects of Large and Small Minimum Wage Changes written by Jeffrey Clemens and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper advances the use of pre-analysis plans in non-experimental research settings. In a study of recent minimum wage changes, we demonstrate how analyses of medium- and long-run impacts of policy interventions can be pre-specified as extensions to short-run analyses. Further, our pre-analysis plan includes comparisons of the effects of large vs. small minimum wage increases, which is a theoretically motivated dimension of heterogeneity. We discuss how these use cases harness the strengths of pre-analysis plans while mitigating their weaknesses. This project's initial analyses explored CPS and ACS data from 2011 through 2015. Alongside these analyses, we pre-committed to analyses incorporating CPS and ACS data extending through 2019. Averaging across the specifications in our pre-analysis plan, we estimate that relatively large minimum wage increases reduced employment rates among low-skilled individuals by just over 2.5 percentage points. Our estimates of the effects of relatively small minimum wage increases vary across data sets and specifications but are, on average, both economically and statistically indistinguishable from zero. We estimate that medium-run effects exceed short-run effects and that the elasticity of employment with respect to the minimum wage is substantially more negative for large minimum wage increases than for small increases.

Download or read book Employment Effects of Minimum Wage Rates written by John M. Peterson and published by American Enterprise Institute Press. This book was released on 1969 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book What Does the Minimum Wage Do written by Dale Belman and published by W.E. Upjohn Institute. This book was released on 2014-07-07 with total page 489 pages. Available in PDF, EPUB and Kindle. Book excerpt: Belman and Wolfson perform a meta-analysis on scores of published studies on the effects of the minimum wage to determine its impacts on employment, wages, poverty, and more.

Download or read book Heterogeneous Effects of a Minimum Wage Increase on Hours Worked written by Paul Redmond and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study uses new administrative earnings data, linked to the Irish Labour Force Survey, to analyse the impact of three successive minimum wage increases that took place over the period 2016 to 2018, on the hours worked of minimum wage employees. The study allows for the assessment of the cumulative impact of minimum wage increases that might otherwise be missed in frameworks that examine the yearly policy effect at a particular point in time. This is important as the yearly rate rises from 2016 to 2018 may have a small effect in any one particular year, while amounting to a significant cumulative effect when added together. The data at hand are also sufficient to allow us to test for heterogeneous impacts across different types of minimum wage workers depending on contract type, sector and region.

Download or read book Empirical studies on the effect of the minimum wage Why are empirical studies of the minimum wage in conflict written by and published by GRIN Verlag. This book was released on 2024-07-03 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2018 in the subject Business economics - Economic Policy, grade: 1,3, Otto-von-Guericke-University Magdeburg (Wirtschaftswissenschaften), language: English, abstract: The minimum wage is an often discussed topic between economists and politicians. The introduction of the minimum wage in Germany as well as in other countries leads to the emergence of new questions. Point of views on the consequences of the minimum wage differ greatly. Supporters of the minimum wage claim that the wage leads to an improvement in the well-being of low income families. Furthermore, they support the view that the introduction of the minimum wage diminishes the distance between high and low income families. On the contrary, opponents argue that the minimum wage cannot reduce inequality in low income families as the correlation between low-wage workers and their families is not strong enough. The opposed view declares that the minimum wage would target families among the entire distribution of incomes resulting in a target inefficiency and lower demand for labor and therefore higher unemployment. Empirical research tries to evaluate the contrary discussed consequences in order to derive a conclusion on the effects of employment, income distribution, employment hours and other factors affected by a minimum wage. Some researchers infer that the minimum wage leads to the reduction of employment of low-wage workers, while other experiments conclude that the minimum wage does not have any negative employment effects and might even boost employment. Therefore, the aim of this paper is to evaluate why empirical research ascertains different point of views on the minimum wage and which factors play an important role in the development and evaluation of the experiments. Hence, this paper examines the following research question “Why are empirical studies of the minimum wage in conflict?”.

Download or read book Essays in Labor Economics written by Weilong Zhang and published by . This book was released on 2018 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis consists of three chapters. They explore develop and estimate economic models to analyze questions of interests to public policies.Chapter 1 develops and estimates a spatial general equilibrium job search model to study the effects of local and universal (federal) minimum wage policies. In the model, firms post vacancies in multiple locations. Workers, who are heterogeneous in terms of location and education types, engage in random search and can migrate or commute in response to job offers. The model is estimated by combining multiple databases including the American Community Survey (ACS) and Quarterly Workforce Indicators (QWI). The estimated model is used to analyze how minimum wage policies affect employment, wages, job postings, vacancies, migration/commuting, and welfare. Empirical results show that minimum wage increases in local county lead to an exit of low type (education 12 years) workers and an influx of high type workers (education 12 years), which generates negative externalities for workers in neighboring areas. The model is used to simulate the effects of a range of minimum wages. Minimum wage increases up to $14/hour increase the welfare of high type workers but lower the welfare of low type workers, expanding inequality. Increases in excess of $14/hour decrease welfare for all workers. Two counterfactual policies are further evaluated under this framework: restricting labor mobility and preempting local minimum wage laws. For a certain range of minimum wages, both policies have negative impacts on the welfare of high type workers, but benecial effects for low type workers. Chapter 2 poses a dynamic discrete choice model of schooling and occupational choices that incorporates time-varying personality traits, as measured by the so-called "Big Five" traits. The model is estimated using the Household Income and Labor Dynamics in Australia (HILDA) longitudinal dataset from Australia. Personality traits are found to play a critical role in explaining education and occupational choices over the lifecycle. The traits evolve during young adult years but stabilize in the mid-30s. Results show that individuals with a comparative advantage in schooling and white-collar work have, on average, higher cognitive skills and higher personality traits, in all ve dimensions. The estimated model is used to evaluate two education policies: compulsory senior secondary school and a 50% college subsidy. Both policies are found to be effective in increasing educational attainment, but the compulsory schooling policy provides greater benets to lower socioeconomic groups. Allowing personality traits to evolve with age and with years of schooling proves to be important in capturing policy response heterogeneity. Chapter 3 develops and estimates a model of how personality traits affect household time and resource allocation decisions and wages. In the model, households choose between two behavioral modes: cooperative or noncooperative. Spouses receive wage offers and allocate time to supply labor market hours and to produce a public good. Personality traits, measured by the so-called "Big Five" traits, can affect household bargaining weights and wage offers. Model parameters are estimated by Simulated Method of Moments using the Household Income and Labor Dynamics in Australia (HILDA) data. Personality traits are found to be important determinants of household bargaining weights and of wage offers and to have substantial implications for understanding the sources of gender wage disparities.