Welfare Reform on the Web (March 2000): Minimum Wage - Overseas

DO MINIMUM WAGE HIKES RAISE US LONG TERM UNEMPLOYMENT? EVIDENCE USING STATE MINIMUM WAGE RATES

M. D. Partridge and J. S. Partridge

Regional Studies, vol. 33, 1999, p. 713-726

Study examines the effect of minimum wage hikes on long-term unemployment. The empirical analysis considers data from the 1980s, when many states raised their minimum wage above the federal level. Results suggest that a higher minimum wage increases long term unemployment rates. Further evidence indicates that increased minimum wage coverage also raises long term unemployment rates.