2023-09-28 14:46:10 +00:00
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abstract: 'A firm''s ability to adjust its production process to economize on
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low-skilled labor when faced with a minimum wage increase will differ
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greatly depending on industry or occupation. For example, more
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capital-intensive means of cleaning hotel rooms or serving customers at
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restaurants may not be readily available without degrading service
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quality. In such situations, the productivity of labor is essentially
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capped, and firms have few options when the minimum wage increases. This
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simple observation has implications for studies that rely on microdata
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to examine the effects of minimum wage increases. If firms only increase
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prices in response to a minimum wage increase, Employment effects are
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likely small. If the goal of the minimum wage is to redistribute income
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from firms and consumers to workers, minimum-wage increases targeted at
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industries and occupations where such rigidities result in an inelastic
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demand for labor may achieve the desired goal at a lower cost than
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across-the-board increases. However such a scheme causes an inefficient
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allocation of labor and would be subjected to substantial political
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pressures that may lead to anomalous results. Additionally, it is
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unreasonable to conclude that policy makers have the necessary
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information to skillfully set the minimum wage.'
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affiliation: 'Wimmer, BS (Corresponding Author), Univ Nevada, Las Vegas, NV 89154
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USA.
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Univ Nevada, Las Vegas, NV 89154 USA.'
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author: Wimmer, BS
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author_list:
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- family: Wimmer
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given: BS
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da: '2023-09-28'
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doi: 10.1007/s12122-000-1038-8
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files: []
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issn: 0195-3613
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journal: JOURNAL OF LABOR RESEARCH
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keywords-plus: EMPLOYMENT; LABOR; LAWS; INEQUALITY; WORKERS
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language: English
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month: FAL
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number: '4'
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number-of-cited-references: '38'
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pages: 649-668
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papis_id: 0d6cbc828cb4f8e07319bcb461cb0ed4
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ref: Wimmer2000minimumwage
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times-cited: '4'
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title: The minimum wage and productivity differentials
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000088318500010
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usage-count-last-180-days: '0'
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usage-count-since-2013: '10'
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volume: '21'
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web-of-science-categories: Industrial Relations \& Labor
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year: '2000'
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