The Elusive Employment Effect of the Minimum Wage

@article{Manning2021TheEE,
  title={The Elusive Employment Effect of the Minimum Wage},
  author={Alan Manning},
  journal={Journal of Economic Perspectives},
  year={2021}
}
  • A. Manning
  • Published 6 May 2016
  • Economics
  • Journal of Economic Perspectives
It is hard to find a negative effect on the employment effect of rises in the minimum wage: the elusive employment effect. It is much easier to find an impact on wages. This paper argues the elusive employment effect is unlikely to be solved by better data, methodology, or specification. The reasons for the elusive employment effect are the factors contributing to why the link between higher minimum wages and higher labor costs are weaker than one might think and because imperfect competition… 
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67 Citations
Highly Influential Citations
10
Background Citations
32
Methods Citations
4
Results Citations
4

67 Citations

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References

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The employment effect of the minimum wage is one of the most studied topics in all of economics. This report examines the most recent wave of this research – roughly since 2000 – to determine the…
Product Market Evidence on the Employment Effects of the Minimum Wage
We infer the employment response to a minimum wage change by calibrating a model of employment for the restaurant industry. Whereas perfect competition implies that employment falls and prices rise…
The Effect of the Minimum Wage on Employment and Unemployment: A Survey
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…
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…
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Who Pays for the Minimum Wage?
This paper provides a comprehensive assessment of the margins along which firms responded to a large and persistent minimum wage increase in Hungary. We show that employment elasticities are negative…
The Consequences of Minimum Wage Laws: Some New Theoretical Ideas
Are There Long-Run Effects of the Minimum Wage?
The Impact of Minimum Wages on Labour Market Transitions
We investigate differences in labour market transition rates between high and low minimum wage regimes using Canadian data spanning 1979–2008. We find that higher minimum wages result in lower hiring…
The Effect of Minimum Wages on Low-Wage Jobs*
We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach.…
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