Full Citation
Title: Can A Higher Minimum Wage Rate Help Close The Persistent Racial Wage And Earnings Gaps?
Citation Type: Journal Article
Publication Year: 2020
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Abstract: In this paper, I estimate the effect of minimum wage increases on the racial wage and earnings gaps between black and white workers in the United States, during the years 2000 to 2004. Using fixed-effects and a state-year trend model, I find that an increase to the minimum wage is associated with a 3.6% increase in black workers’ wages, almost double the increase experienced by white men, suggesting a narrowing of the racial wage gap. Conversely, white workers’ overall earnings increased by 1.1%, compared to only 0.78% for black workers. This result suggests that the minimum wage does not reduce overall racial economic disparities. I conclude that the overall benefits workers may receive from minimum wage increases are likely to be concentrated among white men.
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Authors: Mckee, Kimberly
Periodical (Full): The Public Purpose Journal
Issue:
Volume: XVII
Pages: 1-19
Data Collections: IPUMS CPS
Topics: Labor Force and Occupational Structure, Race and Ethnicity
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