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Does raising the minimum wage help the poor?

CollectionsANU Centre for Economic Policy Research (CEPR)
Title: Does raising the minimum wage help the poor?
Author(s): Leigh, Andrew
Keywords: minimum wages
income distribution
Publisher: Canberra, ACT: Centre for Economic Policy Research (CEPR), Research School of Social Sciences, College of Arts and Social Sciences, The Australian National University
Series/Report no.: Discussion Paper (Centre for Economic Policy Research (CEPR), The Australian National University): No. 501 (November 2005)
What is the impact of raising the minimum wage on family incomes? Analysing the characteristics of low wage workers, I find that those who earn near-minimum wages are disproportionately female, unmarried and young, without post-school qualifications and overseas born. About one-third of near-minimum wage workers are the sole worker in their household. Due to low labour force participation rates in the poorest households, minimum wage workers are most likely to be in middle-income households. Using various plausible parameters for the effect of minimum wages on hourly wages and employment, I estimate the impact of a minimum wage rise on inequality.
ISBN: 0 7315 3571 5
ISSN: 1442-8636


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