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Workers who earn at or below the minimum wage in the United States are mostlyeither less educated, young, or female. Little is known, however, concerningthe extent to which the minimum wage influences wage differentials amongworkers with different observed characteristics and among workers with the sameobserved characteristics. This paper shows that changes in the real value ofthe minimum wage over recent decades have affected the relationship of hourlywages with education, experience, and gender. The results suggest that changesin the real value of the minimum wage account in part for the patterns ofchanges in education, experience, and gender wage differentials and mostly forthe patterns of changes in within-group wage differentials among female workerswith lower levels of experience.

Heterogeneous Impact of the Minimum Wage: Implications for Changes in Between- and Within-group Inequality