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Do the skills of adults employed in minimum wage contour jobs explain why they get paid less?

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  • WILLIAM M. RODGERS III
  • WILLIAM E. SPRIGGS
  • BRUCE W. KLEIN

Abstract

Using data from the National Longitudinal Survey of Youth, we compare the pay of workers employed on the minimum wage contour to the pay of similar workers in other jobs. We also examine whether the minimum wage increases of 1990 and 1991 narrow the pay gap. We find that characteristics of minimum wage contour workers explain most of their relative pay disadvantage; however, from 1986 to 1990, a residual wage gap of 5.0 to 5.8 percent emerged. The increases in the minimum wage help to slow the gap's widening.

Suggested Citation

  • William M. Rodgers Iii & William E. Spriggs & Bruce W. Klein, 2004. "Do the skills of adults employed in minimum wage contour jobs explain why they get paid less?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 27(1), pages 38-66.
    • Handle: RePEc:mes:postke:v:27:y:2004:i:1:p:38-66
    DOI: 10.1080/01603477.2004.11051424
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    Cited by:

    1. Damian Grimshaw & Gerhard Bosch & Jill Rubery, 2014. "Minimum Wages and Collective Bargaining: What Types of Pay Bargaining Can Foster Positive Pay Equity Outcomes?," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 470-498, September.

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