A number of recent empirical studies have found no evidence that the minimum wage adversely affects employment. Explanations for such non-negative estimates include new theoretical approaches, empirical identification and data issues. In this paper we examine the robustness of such estimates to...

It is well established in the literature that minimum wage increases compress the wage distribution. Firms respond to these higher labour costs by reducing employment, reducing profits, or raising prices. While there are hundreds of studies on the employment effect of the minimum wage, there are...

With small employment responses becoming prevalent in the literature, the minimum wage is just a program that transfers money from one group to another. If the poor are the consumers of minimum wage labour intensive goods, or if these goods represent a large proportion of their consumption...

The few price effect studies available in the literature are grounded on the standard theory prediction that if employers do not respond to minimum wage increases by reducing employment or profits, they respond by raising prices. However, none of them explicitly discusses the theoretical model...

Several minimum wage variables have been suggested in the literature to estimate the effect of the minimum wage on employment. The most common ones are the real minimum wage, the 'Kaitz index', the 'fraction affected', the 'fraction at' and the 'fraction below'. This diversity of variables makes...

A number of recent empirical studies have found no evidence that the minimum wage adversely affects employment. Explanations for such non-negative estimates include new theoretical approaches, empirical identification and data issues. In this paper we examine the robustness of such estimates to...