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Revisiting the link between minimum wage and wage inequality: Empirical evidence from New Zealand

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  • Pacheco, Gail

Abstract

This paper revisits the contentious link between the level of the minimum wage and wage inequality. This is done utilizing the differential rates of minimum wage increase experienced by two age groups (youth and adults) in New Zealand, over the period 1997 to 2007.

Suggested Citation

  • Pacheco, Gail, 2009. "Revisiting the link between minimum wage and wage inequality: Empirical evidence from New Zealand," Economics Letters, Elsevier, vol. 105(3), pages 336-339, December.
    • Handle: RePEc:eee:ecolet:v:105:y:2009:i:3:p:336-339
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    References listed on IDEAS

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    1. Philippe Van Kerm, 2003. "Adaptive kernel density estimation," Stata Journal, StataCorp LP, vol. 3(2), pages 148-156, June.
    2. Meyer, Robert H & Wise, David A, 1983. "The Effects of the Minimum Wage on the Employment and Earnings of Youth," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 66-100, January.
    3. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
    4. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
    5. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
    6. David S. Lee, 1999. "Wage Inequality in the United States During the 1980s: Rising Dispersion or Falling Minimum Wage?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 977-1023.
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    Cited by:

    1. David Maré & Dean Hyslop, 2021. "Minimum Wages in New Zealand: Policy and practice in the 21st century," Working Papers 21_03, Motu Economic and Public Policy Research.
    2. Zhang, Jingjing, 2012. "Inflow of labour, producer services and wage inequality," Economics Letters, Elsevier, vol. 117(3), pages 600-603.
    3. Nazila Alinaghi & John Creedy & Norman Gemmell, 2020. "The Redistributive Effects of a Minimum Wage Increase in New Zealand: A Microsimulation Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 517-538, December.

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    Keywords

    Minimum wage Inequality;

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