TITLE

Employment Effects of a Local MInimum Wage: Comment

AUTHOR(S)
Gutmann, Peter M.
PUB. DATE
January 1965
SOURCE
Industrial & Labor Relations Review;Jan65, Vol. 18 Issue 2, p246
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In the January 1964 issue of this journal, Professors Maurice C. Benewitz and Robert E. Weintraub calculated the loss in employment within New York City which would follow an increase of the minimum wage to $1.50 from $1.15 per hour. They utilized a very interesting technique; namely, the Cobb-Douglas function. I think these calculations do not, however, present an accurate picture of the actual employment loss which would follow increase in the minimum wage because: (1) their use of the Cobb-Douglas function is improper; (2) assumptions adopted in their study are questionable. This ingenious article fails to provide a reasonably accurate measure of job loss from an increase in the minimum New York City wage to $1.50 per hour due to: (1) failure to make proper use of the Cobb-Douglas function; (2) insufficient analysis of the effect of increase in minimum wage to $1.50 on those already earning $1.50 and up initially; (3) the assumption that product prices do not rise, unlikely to be true for retailing and services; (4) failure to analyze effect of increase in minimum wage on migration of business and jobs out of the city. The general techniques used may, however, be considered one cornerstone of future attempts to measure loss of jobs due to legally imposed business cost increases. Some other cornerstones would be: wage structure analysis, product supply function elasticity analysis, product demand function elasticity analysis, analysis of the time pattern of business migration response to local cost increases.
ACCESSION #
4456034

 

Related Articles

  • INDICATOR.  // People Management;7/10/2008, Vol. 14 Issue 14, p45 

    The article presents employment and legal statistics in Great Britain including the number of jobs created in May 2008, unemployment rate and the national minimum wage.

  • Minimum wages vs. maximum job opportunities. Rankin, Ken // DSN Retailing Today;10/23/2000, Vol. 39 Issue 20, p13 

    Discusses issues regarding the establishment of a national minimum wage rate in the U.S. Percentage of unemployment rate in Imperial County, California; Information on the State Flexibility initiative, a plan allowing states to opt out of future increases in the government minimum wage rate;...

  • Is Anyone Unemployable?  // Saturday Evening Post;Fall1971, Vol. 243 Issue 2, p100 

    Comments on unemployment in the U.S. in 1971. Inconsistency of minimum wage concept with full employment in a free-market society; Role of a national network of citizen draft boards in the employability of the U.S. people; Significance of employment to people.

  • IV. Improving labour market outcomes for marginal groups.  // OECD Economic Surveys: New Zealand;Dec2003 Supplement 3, Vol. 2003, p114 

    Discusses the labor market position of marginal groups or jobless individuals who want to be employed and the unemployment benefit system for the groups in New Zealand. Employment rate in the region; Features of the social assistance systems for marginal groups; Impact of raising the minimum...

  • Employment cycles, low income work and the dynamic impact of wage regulations. A macro perspective. Flaschel, Peter; Greiner, Alfred; Logeay, Camille; Proano, Christian // Journal of Evolutionary Economics;Apr2012, Vol. 22 Issue 2, p235 

    In this paper we investigate, against the background of Goodwin's () growth cycle model, a dual labor market economy and the consequences of introducing an unemployment benefit system and minimum wages in the second labor market and a maximum wage barrier in the first one. In the framework with...

  • INDICATOR.  // People Management;1/1/2009, Vol. 15 Issue 1, p45 

    The article presents employment statistics on unemployment rate, redundancy pay and national minimum wage.

  • How Minimum Wage Devastates Young Blacks. WILLIAMS, WALTER // Human Events;5/23/2011, Vol. 67 Issue 19, p19 

    The article discusses a research study on the devastating effects of minimum wage on minority young adults employed in the state and federal levels. Findings of the Employment Policies Institute indicated the increase in unemployment rate of young adults aged 16-24 years old at 27% overall while...

  • INDICATOR.  // People Management;4/9/2009, Vol. 15 Issue 8, p45 

    The article presents statistics related to employment in Great Britain as of April 2009, including the unemployment rate, the national minimum wage and compensation limits.

  • THE MINIMUM WAGE AND ITS DEVELOPMENT IN THE MEMBER STATES OF THE EUROPEAN UNION. PAVELKA, Tomaáš // Intellectual Economics;Dec2013, Vol. 7 Issue 3, p320 

    The minimum wage is a traditional instrument of economic policy which generate contradictory reactions. All Member States of the European Union have introduced some wage thresholds and most of them use the statutory minimum wage. The development of the minimum wage is very often affected by the...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics