Implications of schedule irregularity as a minimum wage response margin

Jeffrey Clemens and Michael Strain

Applied Economics Letters, 2020, vol. 27, issue 20, 1691-1694

Abstract: Empirical research on minimum wages has historically focused on employment effects, with the implicit assumption that workers who remain employed under a minimum wage regime are better off. This paper develops a simple model and a stylized example to highlight the importance of an underappreciated margin: how a minimum wage might affect the regularity of workers’ schedules. Our analysis illustrates a novel line of intuition for how a minimum wage can reduce welfare even if, as in our example, it increases wages, productivity, and output, without decreasing employment.

Date: 2020
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Working Paper: Implications of schedule irregularity as a minimum wage response margin (2019)
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DOI: 10.1080/13504851.2020.1713978

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