The Effect of the Minimum Wage on Employment and Unemployment: A Survey

Curtis L. Gilroy · Andrew I. Kohen

135 citations0/0 files storedNational Bureau of Economic Research

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Labor market dynamics and wage inequality Employment, Labor, and Gender Studies Gender, Labor, and Family Dynamics

Abstract

In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence of its effect on employment and unemployment.Our discussion of the theory emphasizes recent work using two-sector and heterogeneous-worker models.We then summarize and evaluate the large literature on employment and unemployment effects of the minimum on teenagers.Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment in low-wage industries and areas.

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