Abstract
We summarize recent research on the wage and employment effects of minimum wage laws in the United States and infer from non-U.S. studies of hours laws the likely effects of unchanging U.S. hours laws. The effective minimum wage, increasingly a province of state government, is now closely related to the lower end of a state’s wage distribution. Original estimates demonstrate how the forty-five-year failure to increase the exempt earnings level for salaried workers has raised hours of lower-earning salaried workers and reduced their weekly earnings. The overall conclusion from the literature and the original work is that wages and hours laws in the United States have produced impacts in the directions predicted by economic theory, but that these effects have been quite small.
- © 2019 Russell Sage Foundation. Brown, Charles C., and Daniel S. Hamermesh. 2019. “Wages and Hours Laws: What Do We Know? What Can Be Done?” RSF: The Russell Sage Foundation Journal of the Social Sciences 5(5): 68–87. DOI: 10.7758/RSF.2019.5.5.04. The authors thank the editors, two referees, Will Carrington, David Ellwood, Larry Katz, David Weil, and other participants at the conference for helpful comments. Direct correspondence to: Charles C. Brown at charlieb{at}umich.edu, Department of Economics, University of Michigan, Ann Arbor, MI 48104; and Daniel S. Hamermesh at hamermes{at}eco.utexas.edu, Department of Economics, Barnard College, New York, NY 10027
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