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The Effects of the Fair Labor Standards Act of 1938 on the Southern Seamless Hosiery and Lumber Industries

Andrew Seltzer

The Journal of Economic History, 1997, vol. 57, issue 2, 396-415

Abstract: The Fair Labor Standards Act of 1938 imposed a binding minimum wage on the southern seamless hosiery and lumber industries. However, the process of adjusting to the new minimum differed across the two industries. Seamless hosiery firms substituted capital for labor and converted or replaced old machinery. Southern lumber firms employed fewer workers relative to northern and western firms, however, changes in their resource base and war-related government purchases prevented an absolute decrease in employment levels. Numerous southern lumber firms continued to pay less than minimum rates by illegally evading the act or taking advantage of the intra-stage exemption.

Date: 1997
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