The Minimum Wage as a Tool for Racial Economic Justice
Journal of Economic Literature
no. 3, September 2023
Participants at the 1963 civil rights march on Washington supported minimum wage laws using arguments of economic justice. Many economists at the time argued against the minimum wage based on efficiency concerns rooted in neoclassical theory. After decades of debate, where does the economics profession stand on the justice and efficiency claims of the minimum wage? We discuss the evolution of the minimum wage literature in economics, focusing on racial justice. We highlight recent empirical papers that overwhelmingly support the position of the marchers on Washington while at the same time showing little to no loss of economic efficiency.
Smythe, Andria, and Linchi Hsu.
"The Minimum Wage as a Tool for Racial Economic Justice."
Journal of Economic Literature,
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Time Allocation and Labor Supply
Wage Level and Structure; Wage Differentials
Wages, Compensation, and Labor Costs: Public Policy