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Does raising the minimum wage help the poor?

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Date

Authors

Leigh, Andrew

Journal Title

Journal ISSN

Volume Title

Publisher

Canberra, ACT: Centre for Economic Policy Research (CEPR), Research School of Social Sciences, College of Arts and Social Sciences, The Australian National University

Abstract

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.

Description

Keywords

minimum wages, income distribution

Citation

URI

http://hdl.handle.net/1885/43247

Collections

ANU Centre for Economic Policy Research (CEPR)

Source

Type

Working/Technical Paper

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Entity type

Access Statement

Open Access

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Restricted until

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DP501.pdf (300.74 KB)

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