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Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research

NBER6 Nov 2006
Source type
Article
Published
6 Nov 2006
Added
6 Sept 2026

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What this source establishes

This source establishes that minimum wage increases almost never have positive increases on employment, as often times, it turns out to be a reason to cut off on employment and man-power.

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Supporting excerpt

Two other important conclusions emerge from our review. First, we see very few - if any - studies that provide convincing evidence of positive employment effects of minimum wages, especially from those studies that focus on the broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups.

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