Interpreting Minimum Wage Effects on Wage Distributions: A Cautionary Tale

Christopher Flinn

Annals of Economics and Statistics, 2002, issue 67-68, 309-355

Abstract: We develop a behavioral model that can be utilized with wage data collected before and after a change in the statutory minium wage to determine whether the change was welfare-improving or not. The tests we develop are nonparametric and are implemented using bootstrap methods. We present some empirical evidence that the 1997 minimum wage change from $4,75 to $5,15 in the U.S. increased welfare in the population of youths aged 16-24 but that the 1996 change from $4,25 to $4,75 did not.

Date: 2002
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Citations: View citations in EconPapers (9)

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Working Paper: Interpreting minimum wage effects on wage distribution: a cautionary tale (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2002:i:67-68:p:309-355

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