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Welfare Reform on the Web (January 2005): Minimum Wage - Overseas

DO MINIMUM WAGES AFFECT NON-WAGE JOB ATTRIBUTES? EVIDENCE ON FRINGE BENEFITS

K.I. Simon and R. Kaestner

Industrial and Labor Relations Review, vol.58, 2004, p.52-70

Article tests the hypothesis that employers may respond to minimum wage rises by cutting fringe benefits such as employer health insurance or pension coverage. An analysis of US Current data for 1979 to 2000 found no discernible effect of the minimum wage on fringe benefit generosity.

LIVING WAGES: PROTECTION FOR OR PROTECTION FROM LOW-WAGE WORKERS

D. Neumark

Industrial and Labor Relations Review, vol.58, 2004, p.27-51

Living wage laws in the USA are presented as anti-poverty measures, but only apply to a small group of workers, i.e. those who are employed by firms contracted to provide local government services. Paper tests the hypothesis that living wage laws in fact protect unionised municipal workers. By raising the wages that contractors have to pay, living wage laws may reduce the incentives for local authorities to contract out services. Empirical analysis of the effects of living wage laws on unionised municipal workers shows that their wages are increased as a result of living wage hikes.

MINIMUM WAGE CAN HARM WORKERS BY REDUCING UNEMPLOYMENT

D.R. Lee

Journal of Labor Research, vol.25, 2004, p. 657-666

Article presents a model showing that employers may offset the cost of minimum wage rises by cutting the fringe benefits of their workers instead of laying them off.

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