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Owens, Mark F. & John H. Kagel (2010): Minimum wage restrictions and employee effort in incomplete labor markets. An experimental investigation. In: Journal of Economic Behavior and Organization, Jg. 73, H. 3, S. 317-326. DOI:10.1016/j.jebo.2009.12.002

Abstract

"A minimum wage raises average wages along with modest increases in employees' average effort levels, generating a Pareto improvement in social welfare. The minimum wage reduces effort in the neighborhood of the minimum, but has no systematic effect on effort levels at higher wages. As a consequence average effort increases modestly with a minimum wage as it raises average wages. Similar results are reported within groups, both when introducing and eliminating a minimum wage, although the within group effects of introducing a minimum wage are stronger than dropping it." (Author's abstract, IAB-Doku) ((en))

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Pinoli, Sara (2010): Rational expectations and the puzzling no-effect of the minimum wage. (IZA discussion paper 4933), Bonn, 58 S.

Abstract

"This paper argues that expectations are an important element that needs to be included into the analysis of the effects of the minimum wage on employment. We show in a standard matching model that the observed employment effect is higher the lower is the likelihood associated with the minimum wage variation. On the other side, there is a significant anticipation effect, ignored in the literature. This property is able to explain the controversial results found in the empirical studies. When the policy is anticipated, the effect at the time of the actual variation is small and potentially hard to identify. The model is tested on Spanish data, taking advantage of the unexpected change in the minimum wage following the election of Zapatero in 2004." (Author's abstract, IAB-Doku) ((en))

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Ropponen, Olli (2010): Minimum wages and employment. Replication of Card and Krueger (1994) using the CIC estimator. (Helsinki Center of Economic Research. Discussion paper 289), Helsinki, 17 S.

Abstract

"We employ the original Card and Krueger (1994) data and the CIC estimator to reexamine the evidence on the effect of minimum wages on employment. Our main finding is that the controversial result remains valid only for small fast-food restaurants. This finding is accompanied with a new possible explanation." (Author's abstract, IAB-Doku) ((en))

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Sabia, Joseph J. & Richard V. Burkhauser (2010): Minimum wages and poverty: will a $9.50 federal minimum wage really help the working poor? In: Southern Economic Journal, Jg. 76, H. 3, S. 592-623.

Abstract

"Using data drawn from the March Current Population Survey, we find that state and federal minimum wage increases between 2003 and 2007 had no effect on state poverty rates. When we then simulate the effects of a proposed federal minimum wage increase from $7.25 to $9.50 per hour, we find that such an increase will be even more poorly targeted to the working poor than was the last federal increase from $5.15 to $7.25 per hour. Assuming no negative employment effects, only 11.3% of workers who will gain live in poor households, compared to 15.8% from the last increase. When we allow for negative employment effects, we find that the working poor face a disproportionate share of the job losses. Our results suggest that raising the federal minimum wage continues to be an inadequate way to help the working poor." (Author's abstract, IAB-Doku) ((en))

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Schulten, Thorsten (2010): WSI-Mindestlohnbericht 2010. Unterschiedliche Strategien in der Krise. In: WSI-Mitteilungen, Jg. 63, H. 3, S. 152-160. DOI:10.5771/0342-300X-2010-3-152

Abstract

"Der WSI Mindestlohnbericht 2010 gibt einen Überblick über die aktuelle Mindestlohnpolitik in Europa und ausgewählten außereuropäischen Staaten. Unter Auswertung der WSI-Mindestlohndatenbank werden aktuelle Daten zur Höhe und Entwicklung gesetzlicher Mindestlöhne präsentiert. Es zeigt sich, dass unter den Bedingungen der Krise die einzelnen Staaten sehr unterschiedliche Strategien verfolgen. Während in vielen Ländern die Mindestlöhne eingefroren wurden, kam es in anderen Ländern zu kräftigen Mindestlohnzuwächsen. Als Instrument zur Bekämpfung der Krise können Mindestlöhne einen wichtigen Beitrag zur Stabilisierung der privaten Nachfrage und zur Vermeidung deflationärer Tendenzen leisten." (Autorenreferat, IAB-Doku)

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Masso, Jaan, Thomas Moutos, Gerhard Bosch, Danijel Nestic, Eugenia Fotoniata, Brian Nolan, Damian Grimshaw, Wiemer Salverda, János Köllö, Per Skedinger, Thomas Kalina, Kerly Krillo, Jerome Gautie, Seyhan Erdogdu, Jacek Wallusch & Vassil Tzanov (2010): The minimum wage revisited in the enlarged EU. Genf: International Labour Office, 544 S. DOI:10.4337/9781781000571

Abstract

"This book provides in-depth and innovative analysis of the minimum wage in Europe, looking at its scope within the enlarged EU and posing the question of harmonization between the minimum wages of the individual Member States - or even a common EU minimum wage. It also explores the role of the minimum wage at the national level, looking at trends and effects, with case studies on specific national policy issues or industrial sectors. Minimum wage fixing has returned quite prominently to the core of policy debates, as illustrated by the adoption of a statutory minimum wage by Austria, Ireland and the United Kingdom, and the ongoing discussions in Germany and Sweden. Proposals to have common rules at EU level have also multiplied since EU enlargement, in particular to minimize 'social dumping'. Bringing together 15 national studies from noted European specialists in the field, this timely collection aims to stimulate the current debate." (Author's abstract, IAB-Doku) ((en))

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Watts, Martin J. (2010): How should minimum wages be set in Australia? In: The Journal of Industrial Relations, Jg. 52, H. 2, S. 131-149. DOI:10.1177/0022185609359441

Abstract

"Two recurring themes in submissions by industry groups and the Coalition Government to Safety Net Cases administered by both the Australian Industrial Relations Commission and the Australian Fair Pay Commission, as well as in decisions by both Commissions, have been that (1) an improvement in the tax/transfer arrangements for the low paid is a partial substitute for minimum wage increases; and (2) the family circumstances of low wage recipients should influence the degree of minimum wage adjustment. In this paper it is argued that conflation of the wage and tax/transfer systems introduces major contradictions into the principles of minimum wage adjustment, and that reliance on the tax/transfer system leads to adverse economic and social consequences. A simple rule for minimum wage adjustment is advocated, with the minimum wage level also being periodically recalibrated to enable the ongoing social inclusion of its recipients. Finally, in the international literature, the macroeconomic consequences of modest minimum wage adjustment remain contested, but this debate becomes largely irrelevant if the Federal Government renews its commitment to full employment through a Job Guarantee. Then the minimum wage also becomes the nominal anchor of the wage and price system." (Author's abstract, IAB-Doku) ((en))

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Böckerman, Petri & Roope Uusitalo (2009): Minimum wages and youth employment. Evidence from the Finnish retail trade sector. In: BJIR, Jg. 47, H. 2, S. 388-405. DOI:10.1111/j.1467-8543.2009.00720.x

Abstract

"Following an agreement between the trade unions and the employer organizations in 1993, Finnish employers could temporarily pay less than the existing minimum wage for young workers. We examine the effects of these minimum wage exceptions by comparing the changes in wages and employment of the groups whose minimum wages were reduced with simultaneous changes among slightly older workers for whom the minimum wages remained unchanged. Our analysis is based on payroll record data and minimum wage agreements from the retail trade sector. The results show that average wages in the eligible group declined only modestly. We find no significant effects on employment." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Crofton, Stephanie O., William L. Anderson & Emily C. Rawe (2009): Do higher real minimum wages lead to more high school dropouts? Evidence from Maryland across races, 1993-2004. In: The American Journal of Economics and Sociology, Jg. 68, H. 2, S. 445-464. DOI:10.1111/j.1536-7150.2009.00632.x

Abstract

"We explore whether higher levels of the real minimum wage have differing effects on high school dropout rates across students of various races and ethnicities (whites, African Americans, Hispanics, and Asians). Using a panel of data across Maryland counties and annual observations in 1993 - 2004, we found higher real minimum wages to be associated with higher dropout rates for Hispanic students, but not for other races and ethnicities. We used a variety of model specifications and explanatory variables, including real income, the unemployment rate, teen pregnancy rates, and educational attainment among adults. Several of our findings are broadly consistent with commonly reported sociological observations regarding how behavioral choices may be affected by different levels across races and ethnicities of cultural integration of recent immigrants, family cohesiveness, the value placed on education, small business ownership, and hourly (vs. salaried) employment." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Kabakci, Mahmut (2009): Gesetzlicher Mindestlohn im türkischen Arbeitsrecht. In: Zeitschrift für ausländisches und internationales Arbeits- und Sozialrecht, Jg. 23, H. 2, S. 140-150.

Abstract

"Für die Implementierung eines Mindestlohns gibt es innerhalb und außerhalb der Türkei zwei grundlegende Wege: Zum einen die Aufnahme eines solchen Mindestlohns in allgemein-verbindliche Tarifverträge und zum anderen der Beschluss eines gesetzlichen Mindestlohns. Grundsätzlich ist ein Tarifvertrag als Instrument staatsfreier Preisbildung am Arbeitsmarkt der mit Abstand wichtigste Ordnungsfaktor des Arbeitsrechts. Dennoch bieten Tarifverträge in der türkischen Praxis den Arbeitnehmern keine echten Garantien. In der Türkei kommt einzig und allein dem Arbeitsgesetz4 (ArbG) eine wirkliche Garantiefunktion zu - so auch für Mindestlohn. Seit dem Inkrafttreten des ersten türkischen Arbeitsgesetzes in 1936 ist ein gesetzlicher Mindestlohn fest im Gesetz verankert." (Autorenreferat, IAB-Doku)

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Neumark, David & William Wascher (2002): Do minimum wages fight poverty? In: Economic Inquiry, Jg. 40, H. 3, S. 315-333. DOI:10.1093/ei/40.3.315

Abstract

"We present evidence on the effects of minimum wages on family incomes. The results indicate that minimum wages increase both the probability that poor families escape poverty and the probability that previously nonpoor families fall into poverty. The estimated increase in the flow into poverty is larger, although this difference is not statistically significant. We also find that minimum wages tend to boost the incomes of poor families that remain below the poverty line. On net, the various trade-offs created by minimum wage increases more closely resemble income redistribution among low-income families than income redistribution from high- to low-income families." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Card, David & Alan B. Krueger (2000): Minimum Wages and Employment. A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania : Reply. In: The American economic review, Jg. 90, H. 5, S. 1397-1420. DOI:10.1257/aer.90.5.1397

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Belman, Dale & Paul Wolfson (1999): Its bark is worse than its bite. The wage and employment effects of the minimum wage in the US. In: Australian economic papers, Jg. 38, H. 2, S. 143-163. DOI:10.1111/1467-8454.00048

Abstract

"This study examines the effect of changes in the US minimum wage on wages and employment in 32 industries selected for their presumed sensitivity to the minimum wage. Applying time series techniques commonly used in macroeconomics and finance to changes in the minimum wage occurring from 1967 and 1991, we initially test for a wage response; only where one is found do we test for an employment response. Twenty-five per cent of the industry/minimum-wage-increase pairs show evidence of an appropriate wage response. Eight of these 54 show a statistically significant negative employment response, while six show significant, positive employment responses. Positive effects may be due to either a high variance distribution centred on zero or markets with 'lemons' problems concerning worker quality. Limiting analysis to industries in which the minimum wage binds provides no evidence of a consistent negative relationship between the historical minimum wage and employment." (Author's abstract, IAB-Doku) ((en))

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Card, David & Alan B. Krueger (1995): Time-Series Minimum-Wage Studies. A Meta-analysis. In: The American economic review, Jg. 85, H. 2, S. 238-243.

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Card, David & Alan B. Krueger (1994): Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. In: The American economic review, Jg. 84, H. 4, S. 772-793.

Abstract

"On April 1, 1992, New Jersey's minimum wage rose from $4.25 to $5.05 per hour. To evaluate the impact of the law we surveyed 410 fast-food restaurants in New Jersey and eastern Pennsylvania before and after the rise. Comparisons of employment growth at stores in New Jersey and Pennsylvania (where the minimum wage was constant) provide simple estimates of the effect of the higher minimum wage. We also compare employment changes at stores in New Jersey that were initially paying high wages (above $5) to the changes at lower-wage stores. We find no indication that the rise in the minimum wage reduced employment." (Author's abstract, IAB-Doku) ((en))

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Card, David (1992): Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage. In: Industrial and Labor Relations Review, Jg. 46, H. 1, S. 22-37. DOI:10.1177/001979399204600103

Abstract

"The imposition of a national minimum wage standard provides a natural experiment in which the "treatment effect" varies across states depending on the fraction of workers initially earning less than the new minimum. The author exploits this fact to evaluate the effect of the April 1990 increase in the federal minimum wage on teenagers' wages, employment, and school enrollment. Comparisons of grouped and individual state data confirm that the rise in the minimum wage increased teenagers' wages. There is no evidence of corresponding losses in teenage employment or changes in teenage school enrollment." (Author's abstract, IAB-Doku) ((en))

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Card, David (1992): Do Minimum Wages Reduce Employment? A Case Study of California, 1987-89. In: Industrial and Labor Relations Review, Jg. 46, H. 1, S. 38-54. DOI:10.1177/001979399204600104

Abstract

"In July 1988, California's minimum wage rose from $3.35 to $4.25. During the previous year, 11% of workers in the state and 50% of California teenagers had earned less than the new state minimum. Using published data and samples from the Current Population Survey, the author compares changes in the labor market outcomes of California workers to the corresponding changes in a group of states with no increase in the minimum wage. The minimum wage increase raised the earnings of low-wage workers by 5–10%. Contrary to conventional predictions, however, there was no decline in teenage employment, or any relative loss of jobs in retail trade." (Author's abstract, IAB-Doku) ((en))

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Katz, Lawrence F. & Alan B. Krueger (1992): The Effect of the Minimum Wage on the Fast-Food Industry. In: Industrial and Labor Relations Review, Jg. 46, H. 1, S. 6-21. DOI:10.1177/001979399204600102

Abstract

"Using a longitudinal survey of fast-food restaurants in Texas, the authors examine the impact of recent increases in the federal minimum wage on a low-wage labor market. Less than 5% of fast-food restaurants were using the new youth subminimum wage in July/August 1991, even though the vast majority paid a starting wage below the new hourly minimum wage immediately before it became effective. Although some restaurants increased wages beyond the level needed to comply with higher minimum wages in both 1990 and 1991, those federal minimum wage increases greatly compressed the distribution of starting wages in the Texas fast-food industry. Two findings at variance with conventional predictions are that (1) employment increased more in those firms likely to have been most affected by the 1991 minimum wage increase than in other firms and (2) price changes were unrelated to mandated wage changes." (Author's abstract, IAB-Doku) ((en))

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Stigler, George J. (1946): The economics of minimum wage legislation. In: The American Economic Review, Jg. 36, H. 3, S. 358-365.

Abstract

"The minimum wage provisions of the Fair Labor Standards act of 1938 have been repealed by inflation. Many voices are now taking up the cry for a higher minimum, say, of 60 to 75 cents per hour. Economists have not been very outspoken on this type of legislation. It is my fundamental thesis that they can and should be outspoken, and singularly agreed. 'The popular objective of minimum wage legislation - the elimination of extreme poverty - is not seriously debatable. The important questions are rather (1) Does such legislation diminish poverty? (2) Are there efficient alternatives? The answers are, if I am not mistaken, unusually definite for questions of economic policy. If this is so, these answers should be given. Some readers will probably know my answers already ('no' and 'yes,' respectively); it is distressing how often one can guess the answer given to an economic question merely by knowing who asks it. But my personal answers are unimportant; the arguments on which they rest, which are important, will be presented under four heads:
1. Effects of a legal minimum wage on the allocation of resources.
2. Effects on aggregate employment.
3. Effects on family income.
4. Alternative policies to combat poverty." (Author's abstract, IAB-Doku) ((en))