Institutional Affiliations: American Enterprise Institute and IZA
|Understanding “Wage Theft”: Evasion and Avoidance Responses to Minimum Wage Increases|
with : w26969
A holistic assessment of the labor market effects of minimum wage regulation requires understanding employer compliance. We investigate how minimum wage increases and the strength of enforcement regimes affect the prevalence of subminimum wage payment. Using the Current Population Survey (CPS), we find strong evidence that higher minimum wages lead to a greater prevalence of subminimum wage payment. We estimate that increases in measured underpayment following minimum wage increases average between 14 and 22 percent of realized wage gains. Furthermore, we provide evidence that these estimates are unlikely to be driven by measurement error in the CPS’s wage data, which are self-reported. Taken together, we interpret these findings as evidence that minimum wage noncompliance is an important ...
|Estimating the Employment Effects of Recent Minimum Wage Changes: Early Evidence, an Interpretative Framework, and a Pre-Commitment to Future Analysis|
with : w23084
This paper presents early evidence on the employment effects of state minimum wage increases enacted between January 2013 and January 2015, and offers an interpretative framework to understand why it is of interest to study recent changes in isolation. Given the ongoing transitions of many states’ minimum wage rates, we also set the stage for a pre-committed analysis of the minimum wage changes scheduled for coming years. Through 2015, we estimate that employment among young adults and young individuals with less than a completed high school education expanded modestly less quickly in states that enacted one-time or multi-phase statutory minimum wage increases than in states that enacted no minimum wage increases. Across the specifications we implement and the samples we analyze, many of...
|Do Minimum Wage Increases Influence Worker Health?|
with , : w22578
This study investigates whether minimum wage increases in the United States affect an important non-market outcome: worker health. To study this question, we use data on lesser-skilled workers from the 1993-2014 Behavioral Risk Factor Surveillance Surveys coupled with differences-in-differences and triple-difference models. We find little evidence that minimum wage increases lead to improvements in overall worker health. In fact, we find some evidence that minimum wage increases may decrease some aspects of health, especially among unemployed male workers. We also find evidence that increases reduce mental strain among employed workers.
Published: Brady P. Horn & Johanna Catherine Maclean & Michael R. Strain, 2017. "DO MINIMUM WAGE INCREASES INFLUENCE WORKER HEALTH?," Economic Inquiry, . citation courtesy of