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How important are minimum wage increases in increasing the wages of minimum wage workers?

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Popular discussion presumes minimum wage increases primarily drive wage gains for minimum wage workers. We investigate this presumption using the Current Population Survey to assess the fraction of minimum wage workers receiving raises after 12 months. This fraction is moderately higher following state minimum wage increases, and positively correlated with several measures of labor market tightness. Finally, wage gains frequently follow industry and/or occupation switches, highlighting the importance of career progression for earnings growth among entry-level workers. Career progression and increases in labor demand rather than minimum wage increases appear to drive most wage gains for minimum wage workers.

earningsminimum wagesmobility

Jeffrey Clemens、Michael R. Strain

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Economics Department, University of California at San Diego, La Jolla, California, USA

American Enterprise Institute, Washington, District of Columbia, USA

2023

10.1111/coep.12608

Contemporary economic policy

Contemporary economic policy

SSCI
ISSN：1074-3529
年,卷(期)：2023.41(4)
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