Labor Events and Resources Blog

Wednesday, May 14, 2014

The New Minimum Wage Research

The New Minimum Wage Research

Dale Belman, Michigan State University
Paul J. Wolfson, Tuck School of Business at Dartmouth

...The United States, however, faces a far more favorable situation.  Considering the 16 means of meta-estimates (across the fixed effect, random effect, and random coefficient models) that include a control for whether the estimate is based on U.S. data, the implied employment declines following a 10 percent increase in the minimum wage are very small—between −0.03 and −0.6 percent—and statistically insignificant. Bearing in mind that the estimates for the United States reflect a historic experience of moderate increases in the minimum wage, it appears that if negative effects on employment are present, they are too small to be statistically detectable. Such effects would be too modest to have meaningful consequences in the dynamically changing labor markets of the United States.



Full article at


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