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Minimum Wages and Poverty

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Author Info
Addison, John T.
Blackburn, McKinley L.

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Abstract

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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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 98-42.

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Date of creation: 1998
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Handle: RePEc:zbw:zewdip:5213

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Find related papers by JEL classification:
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June. [Downloadable!] (restricted)
  2. repec:fth:prinin:300 is not listed on IDEAS
  3. David Neumark & William Wascher, 1992. "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(1), pages 55-81, October.
  4. Lawrence Katz & Alan Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Working Papers 678, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  5. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  6. Blackburn, McKinley L., 1997. "Misspecified skedastic functions in grouped-data models," Economics Letters, Elsevier, vol. 55(1), pages 1-8, August. [Downloadable!] (restricted)
  7. Johnson, William R & Browning, Edgar K, 1983. "The Distributional and Efficiency Effects of Increasing the Minimum Wage: A Simulation," American Economic Review, American Economic Association, vol. 73(1), pages 204-11, March. [Downloadable!] (restricted)
  8. repec:fth:prinin:298 is not listed on IDEAS
  9. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Diego Angel-Urdinola, 2008. "Can a minimum wage increase have an adverse impact on inequality? Evidence from two Latin American economies," Journal of Economic Inequality, Springer, vol. 6(1), pages 57-71, March. [Downloadable!] (restricted)
  2. David Neumark & Mark Schweitzer & William Wascher, 2004. "The effects of minimum wages on the distribution of family incomes: a nonparametric analysis," Working Paper 0412, Federal Reserve Bank of Cleveland. [Downloadable!]
    Other versions:
  3. Miguel Székely, 1997. "Policy Options for Poverty Alleviation," RES Working Papers 4062, Inter-American Development Bank, Research Department. [Downloadable!]
  4. Leif Danziger, 2009. "The elasticity of labor demand and the minimum wage," Journal of Population Economics, Springer, vol. 22(3), pages 757-772, July. [Downloadable!] (restricted)
    Other versions:
  5. David Neumark, 2009. "Alternative Labor Market Policies to Increase Economic Self-Sufficiency: Mandating Higher Wages, Subsidizing Employment, and Increasing Productivity," NBER Working Papers 14807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Lonnie K. Stevans, David N. Sessions, 2001. "Minimum Wage Policy and Poverty in the United States," International Review of Applied Economics, Taylor and Francis Journals, vol. 15(1), pages 65-75, January. [Downloadable!] (restricted)
  7. Leif Danziger, 2006. "The Elasticity of Labor Demand and the Optimal Minimum Wage," IZA Discussion Papers 2360, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Daniel Aaronson & Sumit Agarwal & Eric French, 2008. "The consumption response to minimum wage increases," Working Paper Series WP-07-23, Federal Reserve Bank of Chicago. [Downloadable!]
  9. Addison, John T. & Blackburn, McKinley L. & Cotti, Chad D., 2008. "New Estimates of the Effects of Minimum Wages in the U.S. Retail Trade Sector," IZA Discussion Papers 3597, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Madeline Zavodny, 1998. "Why minimum wage hikes may not reduce employment," Economic Review, Federal Reserve Bank of Atlanta, issue Q 2, pages 18-28. [Downloadable!]
  11. Gindling, T.H. & Terrell, Katherine, 2008. "Minimum Wages, Globalization, and Poverty in Honduras," Working Papers RP2008/23, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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  12. David Neumark & William Wascher, 2000. "Using the EITC to Increase Family Earnings: New Evidence and a Comparison with the Minimum Wage," JCPR Working Papers 134, Northwestern University/University of Chicago Joint Center for Poverty Research.
  13. Miguel Székely, 1997. "Opciones de políticas para la paliación de la pobreza," RES Working Papers 4063, Inter-American Development Bank, Research Department. [Downloadable!]
  14. Marianne E. Page & Joanne Spetz & Jane Millar, 2000. "Does the Minimum Wage Affect Welfare Caseloads?," JCPR Working Papers 135, Northwestern University/University of Chicago Joint Center for Poverty Research.
  15. David Neumark & William Wascher, 1997. "Do Minimum Wages Fight Poverty?," NBER Working Papers 6127, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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