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Minimum Wages, Morality, and Efficiency: A Choice Experiment

Author

Listed:
  • Conor Lennon
  • Jose Fernandez
  • Stephan Gohmann
  • Keith Teltser

Abstract

We use a choice experiment to examine public support for minimum wages. We first elicit respondents' moral assessment of two labor market systems: one with a minimum wage and one without. Then, we present four pairs of hypothetical employment outcomes and ask respondents to "vote." Our estimates suggest that the average respondent requires a 4.65 percentage point reduction in unemployment before they would support a system without a minimum wage. We also find that equity matters; respondents are 11.1 percentage points less likely to support a minimum wage if it disproportionately affects minorities and females.

Suggested Citation

  • Conor Lennon & Jose Fernandez & Stephan Gohmann & Keith Teltser, 2019. "Minimum Wages, Morality, and Efficiency: A Choice Experiment," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 176-181, May.
  • Handle: RePEc:aea:apandp:v:109:y:2019:p:176-81
    Note: DOI: 10.1257/pandp.20191088
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    Cited by:

    1. Lennon, Conor & Teltser, Keith F. & Fernandez, Jose & Gohmann, Stephan, 2023. "How morality and efficiency shape public support for minimum wages," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 618-637.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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