Economics ETDs

Author

Leila Burrows

Publication Date

9-3-2010

Abstract

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.

Degree Name

Economics

Level of Degree

Masters

Department Name

Department of Economics

First Advisor

Binder, Melissa

Second Advisor

Binder, Melissa

First Committee Member (Chair)

Krause, Kate

Second Committee Member

Ganderton, Phil

Language

English

Keywords

Minimum Wage, Employment, Recession, Wage Floor

Document Type

Thesis

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