An Analysis of Minimum Wages in the United States

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  • アメリカの最低賃金政策に関する一考察
  • アメリカ ノ サイテイ チンギン セイサク ニ カンスル イチコウサツ

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It was once conventional wisdom among economists that a small increase in the minimum wage would result in a small reduction in the employment of teenagers and unskilled workers. In fact, however, the effect of minimum wages upon employment has been an unsolved question for the last several decades. In the mid-1990s this issue attracted a considerable amount of attention with the emergence in academic circles of some remarkable research which challenged conventional beliefs. This report tries to review both the characteristics and the problems of the current minimum wage system by analyzing the effect on employment of minimum wage increases, seen simultaneously from a theoretical and an empirical viewpoint. First, the effects of minimum wage hike on the employment are not uniform; both negative and positive results are possible, depending on the economic circumstances at the time. In this regard, the issue is still left unresolved. Second, minimum wage increases change the distribution of wages in such a way that low-income households, devoid of attractiveness as a labor force, receive a smaller share of the pie. The higher minimum wage is not bringing about the results that it was primarily designed to deliver early in the last century. Third, paradoxically, the idea of forming more flexible labor markets without tight wage regulations seems to be a reasonable way to create diverse low-wage markets and increase employment opportunities. For example, if the greater number of local governments begins to set their minimum wages lower than the federal regulations, it may be effective in supporting low-income households, including former welfare recipients.

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