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A Literature Review on the Effects of the Minimum Wage: From Employment to Well-Being

In: Public Policy Evaluation and Analysis

Author

Listed:
  • Samir Amine

    (Université du Québec en Outaouais)

  • Joël Éric Olinga Mebada

    (Université du Québec en Outaouais)

Abstract

The aim of this chapter is to examine the potential effects of the minimum wage on three strands (jobs and incomes, poverty and inequality, and health and well-being) in the literature while focusing on recent studies to integrate the changes caused by Covid-19 in the wage structure. In general, the effects of the minimum wage can be seen as mixed with respect to employment. Some studies find negative results that can be considered small or modest. In addition, the use of certain methodologies may influence the results obtained. The decline in youth employment, as predicted by the economic theory, does not seem to be confirmed in the studies used. As for the impacts on poverty and inequality, they are not clear-cut. The minimum wage in some circumstances would be an inadequate tool for income redistribution, which does not target poor households. As for the effect on health and well-being, there is a growing consensus that minimum wage laws can influence employers’ decisions to offer health insurance and improve the self-reported health and well-being of individuals in general.

Suggested Citation

  • Samir Amine & Joël Éric Olinga Mebada, 2024. "A Literature Review on the Effects of the Minimum Wage: From Employment to Well-Being," Contributions to Economics, in: Samir Amine (ed.), Public Policy Evaluation and Analysis, chapter 0, pages 53-68, Springer.
    • Handle: RePEc:spr:conchp:978-3-031-67604-8_4
    DOI: 10.1007/978-3-031-67604-8_4
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