2021/02/01 by Alan Manning · 1 citation
Economics, Econometrics and Finance · #Labor market dynamics and wage inequality #Firm Innovation and Growth
paper · pdf · doi:10.1257/jep.35.1.3
openalex publication_date 2021/02/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/23
It is hard to find a negative effect on the employment effect of rises in the minimum wage: the elusive employment effect. It is much easier to find an impact on wages. This paper argues the elusive employment effect is unlikely to be solved by better data, methodology, or specification. The reasons for the elusive employment effect are the factors contributing to why the link between higher minimum wages and higher labor costs are weaker than one might think and because imperfect competition is pervasive in the labor market.