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Good Intentions Are Not Enough: Why Congress Should Not Raise the Minimum Wage

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January 8, 2007

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[1] Rea S. Hederman, Jr., and James Sherk, "Who Earns the Minimum Wage-Single Parents or Suburban Teenagers?"Heritage Foundation WebMemo No. 1186, August 3, 2006, Table 1, at www.heritage.org/Research/Economy/wm1186.cfm.

[2] Ibid.

[3] Ibid.

[4] Ibid., Table 2 and footnote 6.

[5] See Richard K. Vedder and Lowell E. Gallaway, "Does the Minimum Wage Reduce Poverty?"Employment Policies Institute, June 2001, at www.epionline.org/studies/vedder_06-2001.pdf (December 28, 2006); David Neumark, Mark Schweitzer, and William Wascher, "The Effects of Minimum Wages Throughout the Wage Distribution,"The Journal of Human Resources, Spring 2004, pp. 425-450; David Neumark, Mark Schweitzer, and William Wascher, "The Effects of Minimum Wages on the Distribution of Family Incomes: A Non-Parametric Analysis,"forthcoming in Journal of Human Resources; and David Neumark and William Wascher, "Do Minimum Wages Fight Poverty?"Economic Inquiry, July 2002, pp. 315-333.

[6] Neumark, Schweitzer, and Wascher, "The Effects of Minimum Wages on the Distribution of Family Incomes."Note that though this paper is forthcoming, it is available as National Bureau of Economic Research Working Paper No. 6536 at www.nber.org/papers/w6536. The quote is from page 30 of the Working Paper version.

[7] Robert E. Rector and Rea S. Hederman, Jr., "The Role of Parental Work in Child Poverty,"Heritage Foundation Center for Data Analysis Report No. CDA03-01, January 29, 2003, Table 1, at www.heritage.org/Research/Family/cda-03-01.cfm.

[8] Ibid., Chart 2.

[9] Rea S. Hederman, Jr., and Sam Hyman, "Low-Income Workers May Be Worse Off If Congress Increases the Minimum Wage,"Heritage Foundation WebMemo No. 1187, August 3, 2006, at www.heritage.org/Research/Economy/wm1187.cfm.

[10] David Macpherson and William Even, "Wage Growth Among Minimum Wage Workers,"Employment Policies Institute, June 2004, p. 3, at www.epionline.org/studies/macpherson_06-2004.pdf (December 28, 2006).

[11] Ibid., pp. 3 and 5, Table 1. Wage figures are adjusted for inflation.

[12] Ibid., p. 8, Table 4, and p. 11, Table 5. Note that the "typical"minimum wage earner is defined as the median minimum wage earner.

[13]Ibid.

[14] David Neumark and William Wascher, "Minimum Wage and Employment: A Review of Evidence from the New Minimum Wage Research,"National Bureau of Economic Research Working Paper No. 12663, November 2006, p. 115, at www.nber.org/papers/W12663 (December 20, 2006; subscription required).

[15] Neumark, Schweitzer, and Wascher, "The Effects of Minimum Wages Throughout the Wage Distribution,"p. 442.

[16] Stephen Bazen and Velayoudom Marimoutou, "Looking for a Needle in a Haystack? A Re-examination of the Time Series Relationship between Teenage Employment and Minimum Wages in the United States,"Oxford Bulletin of Economics and Statistics, Vol. 64, Supplement (2002), pp. 699-725.

[17] Larry Singell and James Terborg, "Employment Effects of Two Northwest Minimum Wage Initiatives: Eating and Drinking and Staying Merry,"unpublished working paper, July 2005, at www.uoregon.edu/~lsingell/Minimum_Wage.pdf (December 28, 2006). Forthcoming in Economic Inquiry.

[18] Neumark and Wascher, "Minimum Wage and Employment,"pp. 18-21.

[19] See Kevin Lang and Shulamit Kahn, "The Effect of Minimum-Wage Laws on the Distribution of Employment: Theory and Evidence,"Journal of Public Economics, Vol. 69, No. 1 (July 1998), pp. 67-82, and David Neumark and William Wascher. "The Effects of Minimum Wages on Teenage Employment and Enrollment: Evidence from Matched CPS Surveys,"in Solomon Polachek, ed., Research in Labor Economics, Vol. 15 (Greenwich, Conn.: JAI Press, 1996).

[20] Neumark and Wascher, "Minimum Wage and Employment."

[21] David Neumark and Olena Nizalova, "Minimum Wage Effects in the Longer Run,"National Bureau of Economic Research Working Paper No. W10656, June 2004, at www.nber.org/papers/w10656 (December 20, 2006; subscription required).