Working Paper: NBER ID: w0846
Authors: Charles Brown; Curtis Gilroy; Andrew Kohen
Abstract: In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence of its effect on employment and unemployment. Our discussion of the theory emphasizes recent work using two-sector and heterogeneous-worker models. We then summarize and evaluate the large literature on employment and unemployment effects of the minimum on teenagers. Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment in low-wage industries and areas.
Keywords: minimum wage; employment; unemployment; labor market; teenagers
JEL Codes: J38; J23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| minimum wage (J38) | employment (J68) |
| minimum wage (J38) | unemployment (J64) |
| minimum wage (J38) | employment (monopsony model) (J42) |
| minimum wage increase (J38) | productivity (O49) |
| displacement from covered sectors (J63) | migration to uncovered sectors (J68) |