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

Charles Brown, Curtis Gilroy, Andrew Kohen

NBER Working Paper No. 846 (Also Reprint No. r0330)
Issued in 1982
NBER Program(s):Labor Studies

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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Document Object Identifier (DOI): 10.3386/w0846

Published: Brown, Charles; Gilroy, Curtis; and Kohen, Andrew. "The Effect of the Minimum Wage on Employment and Unemployment." Journal of Economic Literature, Vol. 20, No. 2 (June 1982), pp. 487-528.