This study analyzes the effect of minimum wage legislation during a period of economic recession. In particular, I examine whether states with minimum wages higher than the federal minimum wage fared better or worse during the recession that began December 2007. Since minimum wages raise the price of labor above market price, firms subject to this additional cost might experience greater adverse effects of the recession. On the other hand, since state minimum wages are often enacted in states with relatively high market wages, the disemployment effects of minimum wage legislation might be negligible. Despite a large increase in minimum wages during this period, no significant disemployment effects were estimated.
Level of Degree
Department of Economics
First Committee Member (Chair)
Second Committee Member
Minimum Wage, Employment, Recession, Wage Floor
Burrows, Leila. "Minimum Wage States During Recession." (2010). http://digitalrepository.unm.edu/econ_etds/40