Research

  • Citywide Compensation Floors

    This study from economist Aaron Yelowitz at the University of Kentucky suggests that, though San Francisco considers itself a unique outpost of progressive thought, the laws of economics still apply. A double-digit compensation floor that affects employees at businesses with single-digit profit margins is guaranteed to create unintended consequences, no matter the political climate in which it occurs. Continue reading →

  • $9.80 Federal Minimum Wage

    EPI’s analysis of proposals to create a $9.80 minimum wage, based on Census Bureau data, finds that they would be poorly targeted to the low-income families they’re intended to help. This is consistent with a wide body of economic research finding that minimum wages are a poor way to reduce poverty, and also reduce employment opportunities among the least-skilled. Continue reading →

  • Minimum Wages and Poverty

    In this study, economists Joseph Sabia at San Diego State University and Robert Nielsen at the University of Georgia found no evidence that a higher minimum wage has helped reduce financial, housing, health, or food insecurity. This is true across all employees in general, and for smaller sub-sets of the less-educated and less-experienced. Continue reading →

  • Tip Credits and Employment

    This study by economists William Even at Miami University and David Macpherson at Trinity University uses two different government datasets to examine the impact of states reducing or eliminating their tip credit—a part of labor law that allows tipped employees to be paid a lower cash wage as long as they earn at least the minimum when tips are included. Continue reading →

  • Unequal Harm

    This study by economists William Even at Miami University and David Macpherson at Trinity University examines whether wage mandates have a disparate impact on minority groups. Using a dataset that spans almost 20 years and contains 600,000 observations, the authors find substantial disparities in the employment consequences of a higher minimum wage. Continue reading →

  • Just Getting By?

    This study by Bradley Schiller at the University of Nevada-Reno examines the earnings and characteristics of adults who earn the minimum wage. Contrary to popular belief, the author finds that only a small number of these adults are the primary breadwinner in their family. Continue reading →

  • Failed Stimulus

    This study by economist Joseph Sabia at the United States Military Academy at West Point examines whether raising the minimum wage boosts the economy, as many proponents of a higher minimum wage have claimed. The author finds no evidence of a relationship between past minimum wage increases and gross domestic product (GDP) Continue reading →

  • The Erosion of the Entry-Level Job Market

    This study by Drs. Walter Wessels (North Carolina State University) and Nicole Coomer (Workers Compensation Research Institute) examines the impact of a rising minimum wage on those who work jobs that pay the minimum. The authors point out that not all entry-level jobs are covered by federal minimum wage laws—thus, less-skilled employees who are priced out of a job after the minimum wage rises might find employment Continue reading →

  • The Teen Employment Crisis

    This study by economists William Even at Miami University and David Macpherson at Trinity University examines the employment impact of the 40 percent increase in the federal minimum wage that occurred between 2007 and 2009. Specifically, the authors study the effects of the higher wage on young adults aged 16 to 19. Continue reading →