Minimum Wages and Poverty

Addison, John T. ; Blackburn, McKinley L.

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URL:	http://ub-madoc.bib.uni-mannheim.de/653
URN:	urn:nbn:de:bsz:180-madoc-6536
Document Type:	Working paper
Year of publication:	1998
The title of a journal, publication series:	None
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: J38 ,
Subject headings (SWD):	Arbeitsmarkt , Niedriglohn , Armut
Abstract:	The principal justification for minimum wage legislation resides in improving the economic condition of low-wage workers. Most previous analyses of the distributional effects of minimum wages have been confined to simulation exercises employing rather restrictive assumptions that guarantee the conclusion that an increase in the minimum wage reduces poverty. In contrast, we adopt a more flexible "reduced-form" approach that links increases in both federal and state minima to contemporaneous changes in poverty rates. For the period 1983-96, we find indication of a poverty-reducing effect of minimum wages among older junior-high dropouts and among teenagers.
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BASE: Addison, John T. ; Blackburn, McKinley L.

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