Wages and Hours Laws: What Do We Know? What Can Be Done?

Charles Brown and Daniel Hamermesh

No 12410, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We summarize recent research on the wage and employment effects of minimum wage laws in the U.S. and infer from non-U.S. studies of hours laws the likely effects of unchanging U.S. hours laws. Minimum wages in the U.S. have increasingly become a province of state governments, with the effective minimum wage now closely related to a state's wage near the lower end of its wage distribution. Original estimates demonstrate how the 45-year failure to increase the exempt earnings level for salaried workers under U.S. hours laws has raised hours of lower-earning salaried workers and reduced their weekly earnings. The overall conclusion from the literature and the original work is that wages and hours laws in the U.S. have produced impacts in the directions predicted by economic theory, but that these effects have been quite small.

Keywords: employment; hours; labor regulation; overtime; minimum wages (search for similar items in EconPapers)
JEL-codes: J18 J23 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2019-06
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (6)

Published - published in: RSF -The Russell Sage Foundation Journal of the Social Sciences, 2019, 5 (5), 68-87

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Working Paper: Wages and Hours Laws: What Do We Know? What Can Be Done? (2019)
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