Economics of Minimum Wages

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 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.