The Impact of the Minimum Wage on Other Wages

Jean Baldwin Grossman

Journal of Human Resources, 1983, vol. 18, issue 3, 359-378

Abstract: In this paper I explore how changes in the minimum wage affect various occupational wages. I postulate that other wages increase for two reasons: first, firms try to mitigate the deterioration in a worker's relative wage which would cause him to reduce his work effort, and second, there is an increase in the demand for nonminimum wage workers. Wage adjustment patterns are examined to ascertain whether wage comparisons play a role in the adjustment process. The empirical work shows a short-run wage compression among white-collar occupations which is consistent with the wage comparison model. However, large standard errors make inferences weak.

Date: 1983
References: Add references at CitEc
Citations: View citations in EconPapers (97)

Downloads: (external link)
http://www.jstor.org/stable/pdfplus/145206
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:18:y:1983:i:3:p:359-378

Access Statistics for this article

More articles in Journal of Human Resources from University of Wisconsin Press
Bibliographic data for series maintained by ().