Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148446
Authors: 
Sabia, Joseph J.
Year of Publication: 
2015
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2015 [Issue:] 221
Abstract: 
Proponents of minimum wage increases have argued that such hikes can serve as an engine of economic growth and assist low-skilled individuals during downturns in the business cycle. However, a review of the literature provides little empirical support for these claims. Minimum wage increases redistribute gross domestic product away from lower-skilled industries and toward higher-skilled industries and are largely ineffective in assisting the poor during both peaks and troughs in the business cycle. Minimum wage-induced reductions in employment are found to be larger during economic recessions.
Subjects: 
minimum wages
business cycle
productivity
poverty
JEL: 
J38
J31
Persistent Identifier of the first edition: 
Document Type: 
Article

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