Minimum Cash Wages,Tipped Restaurant Workers,and Poverty

This is the first study to examine the effect of increases in the tipped minimum cash wage—the wage employers must pay to tipped employees—on poverty. Using March Current Population Survey data (1988–2014), we find that tipped minimum cash wage increases are associated with declines in the risk of a tipped restaurant worker living in a poor family (elasticities around –0.2). However, we find little evidence of poverty‐alleviating effects when using the household rather than the family as the sharing unit. This result is consistent with evidence that a substantial share of tipped workers who live in a poor family live in a nonpoor household with persons unrelated by blood, marriage, or adoption who contribute to the household's income. Furthermore, we find that tipped minimum cash wage hikes are associated with increases in the risk of a younger, less‐educated individual living in a poor family or household. Adverse labor demand effects that redistribute income among low‐skilled individuals drive these results. We conclude that raising the tipped minimum cash wage is a poorly targeted policy to deliver income to poor restaurant workers.     

The Effects of Minimum Wages on Low‐Skilled Immigrants’ Wages,Employment, and Poverty

Raising the minimum wage has been advanced as complementary policy to comprehensive immigration reform to improve low‐skilled immigrants’ economic well‐being. While adverse labor demand effects could undermine this goal, existing studies do not detect evidence of negative employment effects. We re‐investigate this question using data from the 1994 to 2016 Current Population Survey and conclude that minimum wage increases reduced employment of less‐educated Hispanic immigrants, with estimated elasticities of around –0.1. However, we also find that the wage and employment effects of minimum wages on low‐skilled immigrants diminished over the last decade. This finding is consistent with more restrictive state immigration policies and the Great Recession inducing outmigration of low‐skilled immigrants, as well as immigrants moving into the informal sector. Finally, our results show that raising the minimum wage is an ineffective policy tool for reducing poverty among immigrants.     

Are Minimum Wage Effects Greater in Low‐Wage Areas?

Empirical work on the minimum wage typically estimates effects averaged across high‐ and low‐wage areas. Low‐wage labor markets could potentially be less able to absorb minimum wage increases, in turn leading to more negative employment effects. In this article, we examine minimum wage effects in low‐wage counties, where relative minimum wage ratios reach as high as 0.82, well beyond the state‐based ratios in extant studies. Using data from the American Community Survey, the Quarterly Workforce Indicators, and the Quarterly Census on Employment and Wages, we implement event study and difference‐in‐differences methods, estimating average causal effects for all events in our sample and separately for areas with lower and higher impacts. We find positive wage effects, especially in high‐impact counties, but do not detect adverse effects on employment, weekly hours, or annual weeks worked. We do not find negative employment effects among women, Blacks, and/or Hispanics. In high‐impact counties, we find substantial declines in household and child poverty. These results inform policy debates about providing exemptions to a $15 federal minimum wage in low‐wage areas.     

Minimum Wages and Youth Employment: Evidence from the Finnish Retail Trade Sector

Following an agreement between the trade unions and the employer organizations in 1993, Finnish employers could temporarily pay less than the existing minimum wage for young workers. We examine the effects of these minimum wage exceptions by comparing the changes in wages and employment of the groups whose minimum wages were reduced with simultaneous changes among slightly older workers for whom the minimum wages remained unchanged. Our analysis is based on payroll record data and minimum wage agreements from the retail trade sector. The results show that average wages in the eligible group declined only modestly. We find no significant effects on employment.     

The Effect of Minimum Wages on Labour Market Outcomes: County‐Level Estimates from the Restaurant‐and‐Bar Sector

We use US county‐level data on employment and earnings in the restaurant‐and‐bar sector to evaluate the impact of minimum‐wage changes in low‐wage labour markets. Our estimated models are consistent with a simple competitive model in which supply‐and‐demand factors affect both the equilibrium outcome and the probability of the minimum wage being binding. Our evidence does not suggest that minimum wages reduce employment once controls for trends in county‐level sectoral employment are incorporated. Rather, employment appears to exhibit an independent downward trend in states that have increased their minimum wages relative to states that have not, thereby predisposing estimates towards reporting negative outcomes.     

Who Is Affected by the Minimum Wage?

Prior surveys of empirical research on the minimum wage have been organized around the question “What does the minimum wage affect?” This survey is organized around the question “Who is affected by the minimum wage?” We review the consequences of the minimum wage for teens and young workers, men and women, African Americans and Hispanics, the less educated, workers in low‐wage industries, and low‐wage/low‐income populations. Although there is almost universal agreement that the minimum wage boosts earnings, evidence for a negative employment effect varies between mixed and nonexistent. An important gap in the literature is the paucity of research on low‐wage/low‐income groups.     

Minimum Wage Channels of Adjustment

We analyze the effects of minimum wage increases in 2007–2009 using a sample of restaurants from Georgia and Alabama. Store‐level payroll records provide precise measures of compliance costs. We examine multiple adjustment channels. Exploiting variation in compliance costs across restaurants, we find employment and hours responses to be variable and in most cases statistically insignificant. Channels of adjustment to wage increases and to changes in nonlabor costs include prices, profits, wage compression, turnover, and performance standards.     

The Employment Effects of Minimum Wages: Evidence from a Prespecified Research Design The Employment Effects of MinimumWages

This article presentsevidence on the employment effects of recent minimum wage increases from a prespecified research design that entailed committing to a detailed set of statistical analyses prior to “going to” the data. The limited data to which the prespecified research design can be applied may preclude finding many significant effects. Nonetheless, the evidence is most consistent with disemployment effects of minimum wages for younger, less‐skilled workers.     

Does the UK Minimum Wage Reduce Employment? A Meta‐Regression Analysis

The employment effect from raising the minimum wage has long been studied but remains in dispute. Our meta‐analysis of 236 estimated minimum wage elasticities and 710 partial correlation coefficients from 16 UK studies finds no overall practically significant adverse employment effect. Unlike US studies, there seems to be little, if any, overall reporting bias. Multivariate meta‐regression analysis identifies several research dimensions that are associated with differential employment effects. In particular, the residential home care industry may exhibit a genuinely adverse employment effect.     

Do Minimum Wages Really Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data

Traditional estimates that often find minimum wage disemployment effects include controls for state unemployment rates and state‐ and year‐fixed effects. Using CPS data on teens for the period 1990–2009, we show that such estimates fail to account for heterogeneous employment patterns that are correlated with selectivity among states with minimum wages. As a result, the estimates are often biased and not robust to the source of identifying variation. Including controls for long‐term growth differences among states and for heterogeneous economic shocks renders the employment and hours elasticities indistinguishable from zero and rules out any but very small disemployment effects. Dynamic evidence further shows the nature of bias in traditional estimates, and it also rules out all but very small negative long‐run effects. In addition, we do not find evidence that employment effects vary in different parts of the business cycle. We also consider predictable versus unpredictable changes in the minimum wage by looking at the effects of state indexation of the minimum wage.     

我国最低工资标准的就业效应——基于全国和地区的实证研究

利用1996年～2007年全国27个省、直辖市、自治区的面板数据模型，考察了最低工资标准对就业的影响。实证结果表明，最低工资标准的提高对全国总体就业有负影响，但影响力度很小。进一步的地区分析表明，最低工资标准的提高对东、西部地区的就业有负影响，对中部地区的就业则无显著性影响。最后给出了相关的政策建议。     

Amazon Mechanical Turk and the commodification of labour

Crowd employment platforms enable firms to source labour and expertise by leveraging Internet technology. Rather than offshoring jobs to low‐cost geographies, functions once performed by internal employees can be outsourced to an undefined pool of digital labour using a virtual network. This enables firms to shift costs and offload risk as they access a flexible, scalable workforce that sits outside the traditional boundaries of labour laws and regulations. The micro‐tasks of ‘clickwork’ are tedious, repetitive and poorly paid, with remuneration often well below minimum wage. This article will present an analysis of one of the most popular crowdsourcing sites—Mechanical Turk—to illuminate how Amazon's platform enables an array of companies to access digital labour at low cost and without any of the associated social protection or moral obligation.     

Tipped Wage Effects on Earnings and Employment in Full‐Service Restaurants

We exploit more than 20 years of changes in state‐level tipped wage policy and estimate earnings and employment effects of the tipped wage using county‐level panel data on full‐service restaurants (FSR). We extend earlier work by Dube, Lester, and Reich ( 2010 ) and compare outcomes between contiguous counties that straddle a state border. We find a 10‐percent increase in the tipped wage increases earnings in FSRs about 0.4 percent. Employment elasticities are sensitive to the inclusion of controls for unobserved spatial heterogeneity. In our preferred models, we find small, insignificant effects of the tipped wage on FSR employment.     

Wage Structure and Dynamics in the Electronics Industry

This study analyzes wage patterns over time among California electronics employers. While the range of wages paid is substantial, employers on average make only small departures from market wage that are not pervasive across occupations or persistent across time. Employers appear able to change employment levels without affecting wages. Internal wage relativities also appear flexible. Differences between administered wage scales and actual wages paid are used to distinguish wage policy from market outcomes.     

Detecting Effects of Living Wage Laws

We estimate the effects of living wage laws on wages of low-wage workers, focusing on the timing of policy, spurious associations, and the type of living wage law passed in a city. Our estimates point to sizable positive wage effects in cities with broad living wage laws that cover employers receiving business assistance from the city. We also explore disemployment effects of living wage laws and find evidence consistent with tradeoffs between wages and employment.     

Minimum Wage Impacts on Older Workers: Longitudinal Estimates from Canada

We use the longitudinal nature of the master file of the Survey of Labour and Income Dynamics in Canada for the period 1993–99 to estimate the employment impacts for older workers of the large number (24) of minimum wage increases that have occurred across the different provincial jurisdictions over that period. Perhaps somewhat surprisingly, the minimum wage increases have positive impacts on the employment of older workers compared with the negative impacts that are commonly estimated for youths in Canada. The results are robust across various comparison groups and measures of the minimum wage increases. Reasons for this unusual finding are discussed.     

Underwork,Work‐Hour Insecurity,and A New Approach to Wage and Hour Regulation

When it was passed in 1938, the Fair Labor Standards Act (FLSA) sought to address the “evils” of underpay and overwork by establishing an hourly minimum wage and requiring premium overtime pay. However, today's low‐wage, hourly workers more often face underwork than overwork, as well as fluctuating, unstable schedules, neither of which is addressed by the FLSA. This paper presents and assesses the effectiveness of an alternative approach to wage and hour regulation, the “reporting pay” guarantee. We begin by examining the problem of work‐hour insecurity, particularly employers’ practice of sending workers home early from scheduled shifts. We then move to a detailed assessment of state laws that require reporting pay, as well as reporting pay guarantees in union contracts and private‐employer practices that attempt to address the problem of work‐hour insecurity. We conclude by considering paths for strengthening such protections in law.     

Annual Review Article 1995

This paper follows the pattern of most of its predecessors, first in serving as a record of events and developments in some areas germane to the employment relationship in Britain between October 1994 and October 1995, and second in offering some interpretative comment on elements of continuity and change. The decelerating economic recovery brought continuing but modest reductions in unemployment and some increase in price inflation. However, tax increases, perceived job insecurity, generally low earnings increases and other factors inhibited any widespread sense of economic well-being and restrained consumer demand. Among the key events were the TUC's strategic initiative on employee representation and union recognition, and the debates surrounding the Greenbury Report on executive remuneration packages and a national minimum wage. Industrial disputes reached record lows. Employment prospects, job insecurity and work-related stress were recurrent issues, with the different approaches of the main political parties to employment matters being clarified ahead of the coming general election.     

The Impact of Living Wages on Employers: A Control Group Analysis of the Los Angeles Ordinance*

This paper analyzes the impact of the Los Angeles Living Wage Ordinance on employers using two original data sets and a quasi‐experimental research design. Relative to a control group of establishments, the starting pay of low‐wage workers has risen by $1.74 per hour, paid days off have risen by two days, and employer‐paid health benefits have not significantly changed among establishments covered by the living wage ordinance. Living wage establishments have witnessed a sizeable reduction in low‐wage worker turnover, a drop in absenteeism, reduced overtime hours, and reduced job training relative to the control group of establishments. The ordinance appears to have had no significant impact on the use of part‐time workers, the intensity of supervision, or the tendency of living wage firms to fill vacancies from within.     

Does Individualizing the Labor Contract Hurt Women?

The twenty‐first century has been marked by a retreat of the collective bargaining rights of public employees throughout the United States. This study exploits the variation in legal environments resulting from these reforms to estimate the causal impact of different collective bargaining policies on public employee compensation. Using data from the American Community Survey, results show a modest wage penalty at the aggregate level for employees covered by constraints on collective bargaining. However, this wage penalty is differential and is concentrated on women in all but one case—a legal environment in which collective bargaining over wages has either been prohibited or directly constricted, allowing governments to periodically institute wage freezes and caps on raises for public employees. In this case, a pre‐existing wage gap in which men earned more than women is disappearing as male and female earnings converge at a lower wage. The paper suggests that the long‐term effects of restricting collective bargaining occur through the individualization of the labor contract and should be examined along individual‐level characteristics, such as gender.