Author: Publisher: GRIN Verlag ISBN: 3389043969 Category : Political Science Languages : en Pages : 51
Book Description
Bachelor Thesis from the year 2018 in the subject Business economics - Economic Policy, grade: 1,3, Otto-von-Guericke-University Magdeburg (Wirtschaftswissenschaften), language: English, abstract: The minimum wage is an often discussed topic between economists and politicians. The introduction of the minimum wage in Germany as well as in other countries leads to the emergence of new questions. Point of views on the consequences of the minimum wage differ greatly. Supporters of the minimum wage claim that the wage leads to an improvement in the well-being of low income families. Furthermore, they support the view that the introduction of the minimum wage diminishes the distance between high and low income families. On the contrary, opponents argue that the minimum wage cannot reduce inequality in low income families as the correlation between low-wage workers and their families is not strong enough. The opposed view declares that the minimum wage would target families among the entire distribution of incomes resulting in a target inefficiency and lower demand for labor and therefore higher unemployment. Empirical research tries to evaluate the contrary discussed consequences in order to derive a conclusion on the effects of employment, income distribution, employment hours and other factors affected by a minimum wage. Some researchers infer that the minimum wage leads to the reduction of employment of low-wage workers, while other experiments conclude that the minimum wage does not have any negative employment effects and might even boost employment. Therefore, the aim of this paper is to evaluate why empirical research ascertains different point of views on the minimum wage and which factors play an important role in the development and evaluation of the experiments. Hence, this paper examines the following research question “Why are empirical studies of the minimum wage in conflict?”.
Author: David Card Publisher: Princeton University Press ISBN: 1400880874 Category : Business & Economics Languages : en Pages : 455
Book Description
From David Card, winner of the Nobel Prize in Economics, and Alan Krueger, a provocative challenge to conventional wisdom about the minimum wage David Card and Alan B. Krueger have already made national news with their pathbreaking research on the minimum wage. Here they present a powerful new challenge to the conventional view that higher minimum wages reduce jobs for low-wage workers. In a work that has important implications for public policy as well as for the direction of economic research, the authors put standard economic theory to the test, using data from a series of recent episodes, including the 1992 increase in New Jersey's minimum wage, the 1988 rise in California's minimum wage, and the 1990–91 increases in the federal minimum wage. In each case they present a battery of evidence showing that increases in the minimum wage lead to increases in pay, but no loss in jobs. A distinctive feature of Card and Krueger's research is the use of empirical methods borrowed from the natural sciences, including comparisons between the "treatment" and "control" groups formed when the minimum wage rises for some workers but not for others. In addition, the authors critically reexamine the previous literature on the minimum wage and find that it, too, lacks support for the claim that a higher minimum wage cuts jobs. Finally, the effects of the minimum wage on family earnings, poverty outcomes, and the stock market valuation of low-wage employers are documented. Overall, this book calls into question the standard model of the labor market that has dominated economists' thinking on the minimum wage. In addition, it will shift the terms of the debate on the minimum wage in Washington and in state legislatures throughout the country. With a new preface discussing new data, Myth and Measurement continues to shift the terms of the debate on the minimum wage.
Author: David Neumark Publisher: Now Publishers Inc ISBN: 1601980124 Category : Employment (Economic theory) Languages : en Pages : 1
Book Description
"We review the burgeoning literature on the employment effects of minimum wages -- in the United States and other countries -- that was spurred by the new minimum wage research beginning in the early 1990s. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wage. However, the oft-stated assertion that recent research fails to support the traditional view that the minimum wage reduces the employment of low-wage workers is clearly incorrect. A sizable majority of the studies surveyed in this monograph give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects, both for the United States as well as for many other countries. Two other important conclusions emerge from our review. First, we see very few -- if any -- studies that provide convincing evidence of positive employment effects of minimum wages, especially from those studies that focus on the broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups"--Forschungsinstitut zur Zukunft der Arbeit web site.
Author: Marvin H. Kosters Publisher: American Enterprise Institute ISBN: 9780844770642 Category : Business & Economics Languages : en Pages : 142
Book Description
The Clinton administration has claimed its proposal to increase the minimum wage would not affect employment; other research supports that a higher minimum wage means fewer jobs.
Author: David Edward Card Publisher: ISBN: 9780691043906 Category : Business & Economics Languages : en Pages : 422
Book Description
The authors present a powerful new challenge to the conventional view that higher minimum wages reduce jobs for low-wage workers. A distinctive feature of their research is the use of empirical methods borrowed from the natural sciences, including comparisons between the "treatment" and "control" groups formed when minimum wage rises for some workers but not for others. Line drawings.
Author: Jerold L. Waltman Publisher: University of Illinois Press ISBN: 9780252025457 Category : Business & Economics Languages : en Pages : 228
Book Description
The minimum wage as a value of civic republicanism The minimum wage appears to be a standard economic regulatory measure, yet a politics of symbolism more than anything else defines the political contests that periodically erupt over it. Detractors abhor its corruption of market principles, while supporters see it as a measure of society's symbolic commitment to the poor. Tracing the history of the minimum wage and exposing its inherent contradictions as a political issue, Jerold Waltman proposes an alternative to the economic arguments that now dominate debates over it. Citing overwhelming public support for the minimum wage as evidence of an enduring civic consciousness and humanitarianism, Waltman advocates recasting the discussion in terms of a political economy of citizenship. Such a perspective would focus on the communal value of work, the need for citizens to have a stake in the community, and the effects of economic inequality on the bonds of common citizenship. Positioning the minimum wage as a fulcrum for the most basic conflict underlying America's unique combination of democracy and a market economy, The Politics of the Minimum Wage shows how a defense of the minimum wage built on a communal sense of responsibility rests on a strong tradition of civic republicanism and strengthens the hope for a truly democratic society.
Author: Christopher J. Flinn Publisher: MIT Press ISBN: 0262288761 Category : Business & Economics Languages : en Pages : 321
Book Description
The introduction of a search and bargaining model to assess the welfare effects of minimum wage changes and to determine an “optimal” minimum wage. In The Minimum Wage and Labor Market Outcomes, Christopher Flinn argues that in assessing the effects of the minimum wage (in the United States and elsewhere), a behavioral framework is invaluable for guiding empirical work and the interpretation of results. Flinn develops a job search and wage bargaining model that is capable of generating labor market outcomes consistent with observed wage and unemployment duration distributions, and also can account for observed changes in employment rates and wages after a minimum wage change. Flinn uses previous studies from the minimum wage literature to demonstrate how his model can be used to rationalize and synthesize the diverse results found in widely varying institutional contexts. He also shows how observed wage distributions from before and after a minimum wage change can be used to determine if the change was welfare-improving. More ambitiously, and perhaps controversially, Flinn proposes the construction and formal estimation of the model using commonly available data; model estimates then enable the researcher to determine directly the welfare effects of observed minimum wage changes. This model can be used to conduct counterfactual policy experiments—even to determine “optimal” minimum wages under a variety of welfare metrics. The development of the model and the econometric theory underlying its estimation are carefully presented so as to enable readers unfamiliar with the econometrics of point process models and dynamic optimization in continuous time to follow the arguments. Although most of the book focuses on the case where only the unemployed search for jobs in a homogeneous labor market environment, later chapters introduce on-the-job search into the model, and explore its implications for minimum wage policy. The book also contains a chapter describing how individual heterogeneity can be introduced into the search, matching, and bargaining framework.
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Author: David Card
Author: David Neumark
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Author: Marvin H. Kosters
Author: David Edward Card
Author: Jerold L. Waltman
Author: Christopher J. Flinn
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Author: United States. Bureau of Labor Statistics