Working Paper: NBER ID: w31818
Authors: Jeffrey Clemens; Michael R. Strain
Abstract: Using Current Population Survey data, we assess whether and to what extent the burden of wage theft — wage payments below the statutory minimum wage — falls disproportionately on various demographic groups following minimum wage increases. For most racial and ethnic groups at most ages we find that underpayment rises similarly as a fraction of realized wage gains in the wake of minimum wage increases. We also present evidence that the burden of underpayment falls disproportionately on relatively young African American workers and that underpayment increases more for Hispanic workers among the full working-age population.
Keywords: Wage Theft; Minimum Wage; Demographic Disparities
JEL Codes: J08; J21; J38; K42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Minimum wage increases (J38) | higher underpayment rates (H29) |
| Minimum wage increases (J38) | higher underpayment rates for young African American workers (J79) |
| Minimum wage increases (J38) | higher underpayment rates for Hispanic workers (J82) |
| Higher underpayment rates for young African American workers (J79) | underpayment as a fraction of realized wage gains (J31) |
| Higher underpayment rates for the overall population (H29) | underpayment as a fraction of realized wage gains (J31) |