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The Effect of the Minimum Wage on Employment and Unemployment: A Survey

Charles Brown, Curtis Gilroy and Andrew Kohen ()

No 846, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence of its effect on employment and unemployment. Our discussion of the theory emphasizes recent work using two-sector and heterogeneous-worker models. We then summarize and evaluate the large literature on employment and unemployment effects of the minimum on teenagers. Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment in low-wage industries and areas.

Date: 1982-01
Note: LS
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Published as Brown, Charles; Gilroy, Curtis; and Kohen, Andrew. "The Effect of the Minimum Wage on Employment and Unemployment." Journal of Economic Literature, Vol. 20, No. 2 (June 1982), pp. 487-528.

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