Welfare Reform on the Web (April 2002): Minimum Wage - Overseas

THE DETERMINANTS OF PROVINCIAL MINIMUM WAGES IN CANADA

V. Dickson and T. Myatt

Journal of Labor Research, vol. 23, 2002 p. 57-67

Examined the relative minimum wage policies of provincial governments in Canada from 1977 to 1996 and investigated the influence of interest groups, ideology and various control variables. Concluded that minimum wage rises were ideology - driven. Minimum wages in Canada were higher when left-wing governments were in power.

THE DETERMINANTS OF STATE MINIMUM WAGE RATES: A PUBLIC POLICY APPROACH

J. Waltman and S. Pittman

Journal of Labor Research, vol. 23, 2002, p. 51-56

Authors assess the importance of state wealth, the strength of the political left and citizen's political beliefs in explaining state minimum wage laws in the US. Find that ideology in the most important factor.

THE IMPACT OF THE MINIMUM WAGE IN WEST VIRGINIA : A TEST OF THE LOW-WAGE-AREA THEORY

M. E. Dobson

Journal of Labour Research, vol. 23, 2002, p. 25-40

West Virginia, relative to the rest of the USA, is a low-wage area, and the impact of minimum wages should be most apparent there. Authors uses county data pooled across eight years to show that minimum wage increases adversely affected the employment levels. A 10% increase in the minimum wages appears to reduce total employment in the average West Virginia county by 1.1% and by 1.4% in the state's rural counties. Analysis shows that minimum wages produce adverse consequences for workers who supposedly benefit.

THE MINIMUM WAGE AND POVERTY AMONG FULL-TIME WORKERS

R. Wedder and L. Galloway

Journal of Labor Research, vol. 23, 2002, p. 41-49

The US minimum wage was intended to reduce the incidence of poverty. Authors find no evidence that it has done so even for full-time workers in regular employment. Because it leads to job losses and hours reductions, increases in the minimum wage can actually exacerbate poverty.

MINIMUM WAGE EFFECTS ON HOURS, EMPLOYMENT AND NUMBER OF FIRMS : THE IOWA CASE.

P. F. Orazem and J. P. Mattila

Journal of Labor Research, vol. 23, 2002, p.3-23

Authors use county-level, two-digit data in a study of how the minimum wage affects low-wage retail and service industry workers in Iowa. Conclude that minimum wages reduced employment opportunities for workers by reducing the number of low-wage jobs and the number of hours worked. In addition, study found that increases in the minimum wage reduced the number of firms.