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The Wage and Employment Dynamics of Minimum Wage Workers
Author(s) -
Even William E.,
Macpherson David A.
Publication year - 2003
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.2003.tb00520.x
Subject(s) - minimum wage , labour economics , wage , efficiency wage , economics , wage share , low wage , wage growth , panel data , panel study of income dynamics , econometrics
This study uses panel data to examine the wage and employment dynamics of minimum wage workers. Compared with workers earning above the minimum, minimum wage workers are much more likely to be new entrants or to exit the labor market. Changes in industry, occupation, and access to job training are particularly important to improving the wages of minimum wage workers. Many minimum wage workers earn less than their potential wage temporarily because of nonwork circumstances that make higher‐paying jobs less attractive.