
Published online:
26 September 2013
Published in print:
31 October 2008
Online ISBN:
9780262280563
Print ISBN:
9780262141024
Contents
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3.1 Introduction 3.1 Introduction
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3.2 The Theory of the Minimum Wage 3.2 The Theory of the Minimum Wage
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3.2.1 The Neoclassical Model 3.2.1 The Neoclassical Model
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3.2.2 Monopsony Models 3.2.2 Monopsony Models
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3.2.3 Summary 3.2.3 Summary
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3.3 Findings on Employment Effects on Less-Skilled U.S. Workers from the First Wave of the New Minimum Wage Research 3.3 Findings on Employment Effects on Less-Skilled U.S. Workers from the First Wave of the New Minimum Wage Research
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3.4 Issues Raised in Subsequent Research 3.4 Issues Raised in Subsequent Research
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3.4.1 The Minimum Wage Variable 3.4.1 The Minimum Wage Variable
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3.4.2 Lagged Effects of the Minimum Wage 3.4.2 Lagged Effects of the Minimum Wage
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3.4.3 Employment and School Enrollment 3.4.3 Employment and School Enrollment
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3.4.4 Aggregate Effects and Trend Differences in the State-Level Panel Data Approach 3.4.4 Aggregate Effects and Trend Differences in the State-Level Panel Data Approach
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3.4.5 Reactions to the State Case Studies 3.4.5 Reactions to the State Case Studies
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3.4.6 Hours versus Employment Effects 3.4.6 Hours versus Employment Effects
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3.5 An Overview of More Recent U.S. Evidence on Employment Effects 3.5 An Overview of More Recent U.S. Evidence on Employment Effects
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3.5.1 Revisiting Aggregate Time-Series Estimates of the Effects of the Federal Minimum Wage 3.5.1 Revisiting Aggregate Time-Series Estimates of the Effects of the Federal Minimum Wage
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3.5.2 Studies Focused on Specific Federal or State Minimum Wage Increases 3.5.2 Studies Focused on Specific Federal or State Minimum Wage Increases
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3.5.3 Efforts to Identify the Effects of the Minimum Wage on Directly Affected Workers 3.5.3 Efforts to Identify the Effects of the Minimum Wage on Directly Affected Workers
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3.6 International Evidence 3.6 International Evidence
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3.6.1 Industrialized Countries 3.6.1 Industrialized Countries
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3.6.1.1 Panel of OECD Countries 3.6.1.1 Panel of OECD Countries
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3.6.1.2 Canada 3.6.1.2 Canada
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3.6.1.3 United Kingdom 3.6.1.3 United Kingdom
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3.6.1.4 France 3.6.1.4 France
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3.6.1.5 Spain 3.6.1.5 Spain
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3.6.1.6 Portugal 3.6.1.6 Portugal
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3.6.1.7 New Zealand 3.6.1.7 New Zealand
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3.6.2 Developing Countries 3.6.2 Developing Countries
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3.6.2.1 Mexico and Colombia 3.6.2.1 Mexico and Colombia
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3.6.2.2 Costa Rica 3.6.2.2 Costa Rica
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3.6.2.3 Honduras 3.6.2.3 Honduras
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3.6.2.4 Indonesia 3.6.2.4 Indonesia
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3.7 Conclusions 3.7 Conclusions
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Chapter
3 The Effects of Minimum Wages on Employment
Get access-
Published:October 2008
Cite
Neumark, David, and William L. Wascher, 'The Effects of Minimum Wages on Employment', Minimum Wages (Cambridge, MA , 2008; online edn, MIT Press Scholarship Online, 26 Sept. 2013), https://doi.org/10.7551/mitpress/9780262141024.003.0003, accessed 4 May 2025.
Abstract
This chapter reviews recent literature on the employment effects of minimum wages, which has become known as the “new minimum wage research,” beginning with a brief treatment of the alternative theoretical models that form the foundation of the recent empirical work on minimum wages. It then turns to the set of four papers which constituted the initial round of the new minimum wage research; discusses the major conceptual and empirical issues that arose out of that initial research; and summarizes the best and most important research which followed.
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