The Unexpected Economics of Minimum Wages
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The Unexpected Economics of Minimum Wages

The Unexpected Economics of Minimum Wages


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About the Book

This book presents a comprehensive analysis of the effects of minimum wages. Michael Reich’s cutting-edge research findings challenge traditional approaches to the topic, exploring the effects of minimum wage policies across different sectors, groups and demographics. Reich examines the effects of minimum wages on pay and employment among the two groups most affected by the policies - restaurant workers and teens - as well as investigating their impact on the lowest-wage areas of the US. He outlines how minimum wages influence parental labor supply, racial inequality, the health of low wage workers and government spending on food stamps and Medicaid. The book further reflects on the extension of pay standards to gig drivers, who are not typically covered by minimum wage laws as independent contractors. It concludes by demonstrating how minimum wages can be absorbed by increasing the supply of workers to low-wage employers, reducing the costs of recruiting and retaining workers and introducing modest price increases, rather than reducing employment. The Unexpected Economics of Minimum Wages is a crucial resource for students, scholars and practitioners of labor economics. Thorough and detailed, it is also key for policymakers and advocates who are working to raise low pay and reduce inequality.

Table of Contents:
Contents PART I EFFECTS ON PAY, EMPLOYMENT, AND PRICES 1 The Ups and Downs of Minimum Wage Policy: The Fair Labor Standards Act in Historical Perspective – Michael Reich 2 2 The Economic Effects of a Citywide Minimum Wage – Arindrajit Dube, Suresh Naidu, and Michael Reich 11 3 Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties – Arindrajit Dube, T. William Lester, and Michael Reich 33 4 Do Minimum Wages Really Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data – Sylvia A. Allegretto, Arindrajit Dube, and Michael Reich 54 5 Minimum Wage Shocks, Employment Flows, and Labor Market Frictions – Arindrajit Dube, T. William Lester, and Michael Reich 90 6 Are Local Minimum Wages Absorbed by Price Increases? Estimates from Internet-Based Restaurant Menus – Sylvia A. Allegretto and Michael Reich 132 7 Are Minimum Wage Effects Greater in Low-Wage Areas? – Anna Godøy and Michael Reich 161 PART II DOWNSTREAM EFFECTS 8 Parental Labor Supply: Evidence from Minimum Wage Changes – Anna Godøy, Michael Reich, Jesse Wursten, and Sylvia A. Allegretto 210 9 Racial Inequality in Frictional Labor Markets: Evidence from Minimum Wages – Jesse Wursten and Michael Reich 237 10 Ten Dollars or Thirteen Dollars? Comparing the Effects of State Minimum Wage Increases in California – Sylvia A. Allegretto, Michael Reich, and Rachel West 256 11 A Win-Win for Working Families and State Budgets: Pairing Medicaid Expansion and a $10.10 Minimum Wage – Rachel West and Michael Reich 285 12 The Effects of Minimum Wages on Food Stamp Enrollment and Expenditures – Michael Reich and Rachel West 321 13 Can Labor Market Policies Reduce Deaths of Despair? – William H. Dow, Anna Godøy, Christopher Lowenstein, and Michael Reich 348 14 An Earnings Standard for New York City’s App-Based Drivers: Economic Analysis and Policy Assessment – James A. Parrott and Michael Reich 367 15 New York City’s Gig Driver Pay Standard: Effects on Drivers, Passengers, and the Companies – Dmitri Koustas, James A. Parrott, and Michael Reich 454

About the Author :
Michael Reich, Professor of Economics and Chair of the Center on Wage and Employment Dynamics, Institute for Research on Labor and Employment, University of California at Berkeley, USA


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Product Details
  • ISBN-13: 9781035358878
  • Publisher: Edward Elgar Publishing Ltd
  • Publisher Imprint: Edward Elgar Publishing Ltd
  • Height: 244 mm
  • No of Pages: 480
  • ISBN-10: 1035358875
  • Publisher Date: 14 Aug 2025
  • Binding: Hardback
  • Language: English
  • Width: 169 mm


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