Annotated Bibliography-Economic Impacts of Minimum Wage Adjustments

Annotated Bibliography-Economic Impacts of Minimum Wage Adjustments

Research Question: Raising the minimum wage increases worker income and reduces poverty while having a negligible impact on overall employment, considering automation trends and productivity gains.

Annotated Bibliography

Horn, B. P., Maclean, J. C., & Strain, M. R. (2017). Do minimum wage increases influence worker health? Economic Inquiry, 55(4), 1986–2007. https://doi.org/10.1111/ecin.12453

This study investigates the impact of minimum wage increases on workers and self-

reported health in the United States labor market. The authors employ data from the

Behavioral Risk Factor Surveillance Survey spanning from 1993 to 2014 and utilize

difference-in-differences and triple-difference models to estimate the effects. While

economic theory suggests a potential link between minimum wage increases and health

outcomes, the empirical findings reveal nuanced results. Specifically, minimum wage

increases among men were associated with an increased probability of reporting fair or

poor health, while no significant effects were found for other health measures. No

statistically significant relationship between minimum wage increases and health

outcomes was observed among women. Additionally, the study explored potential

mechanisms underlying these effects, such as changes in health behaviors, but the

results were mixed and inconclusive. Men with higher minimum wages were more likely to report fair or poor health, whereas other health metrics showed no significant effect. There was no statistically significant correlation between minimum wage rises and health outcomes among women. Additionally, the study explored potential mechanisms underlying these effects, such as changes in health behaviors, but the results were mixed and inconclusive.

The robustness of the findings was subsequently tested using other controls for between-state variations, which confirmed the primary conclusions about the insignificant influence of minimum wage hikes on worker health. This detailed investigation adds to the current debate over the broader effects of minimum wage legislation on worker well-being beyond economic reasons.

Clemens, J., Kahn, L., & Meer, J. (2018). The Minimum Wage, Fringe Benefits, and Worker Welfare. https://doi.org/10.3386/w24635

This study by Clemens, Kahn, and Meer investigated the effects of the minimum-wage adjustments on employer-sponsored health insurance coverage and wages. Using regression analysis and data from the American Community Survey (ACS) and the Occupational Employment Statistics (OES), the authors discover that minimum wage rises result in considerable decreases in employer-sponsored insurance coverage, particularly among low-pay occupation groups. However, they also find modest and statistically negligible effects on wage rates, particularly in higher-income employment groups. The study emphasizes the necessity of taking into account non-wage job characteristics, such as fringe benefits, when evaluating the influence of minimum wage legislation changes on worker welfare.

This resource sheds light on the complicated relationship between minimum wage legislation, worker welfare, and fringe benefits, adding to the continuing discussion about the effectiveness of minimum wage increases in reducing poverty and boosting general worker well-being.

Bailey, M. J., DiNardo, J., & Stuart, B. A. (2021). The economic impact of a high national minimum wage: Evidence from the 1966 Fair Labor Standards Act. Journal of Labor Economics, 39(S2). https://doi.org/10.1086/712554

Bailey, DiNardo, and Stuart look into the economic consequences of the 1966 Fair Labor Standards Act (FLSA) changes, which significantly increased the federal minimum wage and expanded its coverage. Through a comprehensive analysis using state-level variation in the implementation of the FLSA, the authors find substantial increases in wages following the amendments, particularly in states with more workers earning below the new minimum wage. Despite these wage gains, the study reveals relatively modest aggregate employment responses, with slight decreases in employment rates and annual hours worked, especially in lower-earning states. The findings suggest that while raising the minimum wage positively impacts worker income and reduces poverty, its overall effect on employment is minimal.

This study provides valuable insights into the potential consequences of increasing the minimum wage, supporting the thesis statement that such policy changes can boost worker earnings without significantly affecting overall employment levels, given contemporary trends in automation and productivity.

Akin-Olagunju, O., Akinribido, B., & Yusuf, S. (2019). Poverty Effects of Minimum Wage Increase in Nigeria. Developing Country Studies. https://doi.org/10.7176/dcs/9-11-03

This article examines the impact of minimum wage increases on poverty rates. It provides a detailed analysis of household characteristics, distribution of household expenditure, and monthly incomes before and after the minimum wage adjustments. The study reveals that while minimum wage increases positively affect worker income and contribute to poverty reduction, the benefits are skewed towards non-poor households. Compliance with minimum wage legislation is higher in the public sector compared to the private sector, but both sectors experience a drop in compliance after wage increases.

The study highlights the importance of monitoring compliance, adjusting for inflation, and combining minimum wage policies with social safety nets for maximum impact. This resource contributes valuable insights into the complex relationship between minimum wage policies, poverty reduction, and household welfare.

Mumbai, K. (2021). Raising the minimum wage of the US workforce. PARIPEX INDIAN JOURNAL OF RESEARCH, 41–43. https://doi.org/10.36106/paripex/1306861

This article delves into the critical issue of raising the minimum wage in the United States, offering a comprehensive analysis of its historical context, legislative efforts, and socioeconomic implications. The author meticulously examines the impact of minimum wage laws on worker income and poverty levels, highlighting the urgent need for legislative action to address income inequality. The author argues that raising the minimum wage can significantly improve the financial well-being of low-wage workers and lift millions out of poverty, aligning with the thesis statement’s assertion that such measures positively impact worker income and poverty reduction. Additionally, the article suggests that concerns about adverse effects on employment are overstated, given the evolving landscape of automation and productivity gains. Overall, Mumbai’s research provides valuable insights into the complex dynamics surrounding minimum wage policy in the United States, supporting the thesis statement’s argument for raising the minimum wage.

Kim, Y. M. (2015). Minimum wage effect on the manufacturing and service industry: Wage and Employment Structure. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4205337

This article investigates the impact of minimum wage changes on the wage and employment structure of the manufacturing and service industries. Through econometric analysis using data from the Economically Active Population Survey, the author examines wage equations and probit models to assess the effects on both wages and employment. The findings suggest that increasing the minimum wage positively influences industry wages, particularly in the service sector. However, it also highlights a potential negative effect on the employment structure, particularly in service industries, where it may reduce the probability of regular workers. This study contributes valuable insights into the nuanced impacts of minimum wage policies on different sectors of the economy, offering implications for policymakers and stakeholders.

References

Akin-Olagunju, O., Akinribido, B., & Yusuf, S. (2019). Poverty Effects of Minimum Wage Increase in Nigeria. Developing Country Studies. https://doi.org/10.7176/dcs/9-11-03

Bailey, M. J., DiNardo, J., & Stuart, B. A. (2021). The economic impact of a high national minimum wage: Evidence from the 1966 Fair Labor Standards Act. Journal of Labor Economics, 39(S2). https://doi.org/10.1086/712554

Clemens, J., Kahn, L., & Meer, J. (2018). The Minimum Wage, Fringe Benefits, and Worker Welfare. https://doi.org/10.3386/w24635

Horn, B. P., Maclean, J. C., & Strain, M. R. (2017). Do minimum wage increases influence worker health? Economic Inquiry, 55(4), 1986–2007. https://doi.org/10.1111/ecin.12453

Kim, Y. M. (2015). Minimum wage effect on the manufacturing and service industry: Wage and Employment Structure. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4205337

Mumbai, K. (2021). Raising the minimum wage of the US workforce. PARIPEX INDIAN JOURNAL OF RESEARCH, 41–43. https://doi.org/10.36106/paripex/1306861

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Research Question: Raising the minimum wage increases worker income and reduces poverty while having a negligible impact on overall employment, considering automation trends and productivity gains.

Annotated Bibliography-Economic Impacts of Minimum Wage Adjustments