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The Effect of Extending Minimum Wages to Cover Household Maids

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  • J. Peter Mattila

Abstract

Recent federal legislation has proposed that minimum wage laws be extended to cover one of the largest occupational groups currently excluded-household maids. This paper estimates supply and demand functions for maids using cross-section data. The results strongly suggest that households are very quick to find substitutes as the relative cost of their maids rises. Demand for maids would have declined by over 30 percent if a minimum wage of $1.60 had been enforced in 1972. Historical trends in the occupation are consistent with the cross-section analysis.

Suggested Citation

  • J. Peter Mattila, 1973. "The Effect of Extending Minimum Wages to Cover Household Maids," Journal of Human Resources, University of Wisconsin Press, vol. 8(3), pages 365-382.
    • Handle: RePEc:uwp:jhriss:v:8:y:1973:i:3:p:365-382
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    Cited by:

    1. Gudibande, Rohan Ravindra & Jacob, Arun, 2020. "Minimum wages for domestic workers: impact evaluation of the Indian experience," World Development, Elsevier, vol. 130(C).
    2. מנחם כרמי, 1978. "שכר מינימום סקירה ספרותית וההשלכות האפשריות בישראל," Working Papers 358, National Insurance Institute of Israel.
    3. Rohan Ravindra Gudibande & Arun Jacob, 2014. "Minimum Wage Law for Domestic Workers: Impact Evaluation of the Indian Experience," CFD Working Papers 05-2015, Centre for Finance and Development, The Graduate Institute, revised 07 Apr 2015.

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