Do minimum wage hikes reduce employment? State-level evidence from the low-wage retail sector
Article Abstract:
Several recent studies have challenged the conventional notion that raising the minimum wage reduces employment. This study considers this issue by examining the minimum wage's influence on retail employment. Standard labor market analysis suggests that low-wage industries should be particularly sensitive to minimum wage hikes. Therefore, by considering retail employment using pooled-cross sectional, state-level data, this study extends recent research that generally emphasized teen employment. The empirical analysis considers state data from the latter 1980s, a unique period where many states raised their minimum wage above the federal level. Our results suggest that an increased minimum wage reduces retail employment, which is consistent with the standard labor market model. Moreover, further analysis indicates that minimum wage hikes also had relatively large adverse effects on total state employment growth, which implies that state minimum-wage policies can affect firm and household location. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1999
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Political support for minimum wage legislation: 1989
Article Abstract:
A model explaining senators' votes on minimum wage increases in 1966 and 1974 was applied to the 1977 and 1989 votes with similar results. The extent of unionization in each state was positively associated with votes in favor of minimum wage increases. State wage levels were not significantly associated with senators' votes. These results held for Republican senators as well as for all senators. However, neither wage levels nor unionization rates was a significant factor explaining Democrates' votes on minimum wage increases. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1993
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Employee perceptions of the effects of a two-tier wage structure
Article Abstract:
This exploratory study examines three research questions related to employees' perceptions concerning the effects and purposes of a permanent two-tier wage structure in their employment setting. Although much of the popular literature on employee dissatisfaction with tiers has focused on low-wage tier employees, the results of this study indicate overall dissatisfaction with the effects of tiers among both high- and low-wage tier employees. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1991
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