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VideosMarch 11, 2015

David Neumark on the employment effects of minimum wages

In a video interview, IZA Fellow David Neumark (University of California, Irvine) talks about the employment effects of minimum wages – one of the most hotly debated issues in labor economics.

Although a minimum wage policy is intended to ensure a minimal standard of living, unintended consequences undermine its effectiveness, says Neumark. Widespread evidence indicates that minimum wage increases are offset by job destruction. Furthermore, the evidence on distributional effects, though limited, does not point to favorable outcomes, although some groups may benefit.

For more information on this topic see David Neumark’s article on Employment effects of minimum wages published in IZA World of Labor.

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  • distribution
  • employment
  • hiring
  • job destruction
  • labor market
  • low-skilled
  • minimum wages
  • David Neumark
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