.
Minimum
wages and poverty
J. T. Addison and M. L. Blackburn,
ZEW, Mannheim, Discussion
paper, n° 98-42, September, 30 p.,
(1998).
Résumé - Summary
The principal justification for minimum wage
legislation resides in improving the economic condition of low-wage workers.
Most previous analyses of the distributional effects of minimum wages have been
confined to simulation exercises employing rather restrictive assumptions that
guarantee the conclusion that an increase in the minimum wage reduces poverty.
In contrast, we adopt a more flexible "reduced-form" approach that links
increases in both federal and state minima to contemporaneous changes in poverty
rates. For the period 1983-96, we find indication of a poverty-reducing effect
of minimum wages among older junior-high dropouts and among teenagers.