The elusive employment effect of the minimum wage

Alan Manning

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: It is hard to find a negative effect on employment effect of rises in the minimum wage: the elusive employment effect. It is much easier to find an impact on wages. This paper argues the elusive employment effect is unlikely to be solved by better data, methodology or specification. The reason for the elusive employment effect is that there are reason why the link between higher minimum wages and higher labor costs are weaker than one might think and because imperfect competition is pervasive in the labor market.

JEL-codes: J13 J23 J24 J31 J38 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2021-12-01
New Economics Papers: this item is included in nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Published in Journal of Economic Perspectives, 1, December, 2021, 35(1), pp. 3 - 26. ISSN: 0895-3309

Downloads: (external link)
http://eprints.lse.ac.uk/107415/ Open access version. (application/pdf)

Related works:
Journal Article: The Elusive Employment Effect of the Minimum Wage (2021)
Working Paper: The elusive employment effect of the minimum wage (2016)
Working Paper: The elusive employment effect of the minimum wage (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:107415

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