Minimum Wages, Morality, and Efficiency: A Choice Experiment
AbstractWe use a choice experiment to examine public support for minimum wages. We first elicit respondents' moral assessment of two labor market systems: one with a minimum wage and one without. Then, we present four pairs of hypothetical employment outcomes and ask respondents to "vote." Our estimates suggest that the average respondent requires a 4.65 percentage point reduction in unemployment before they would support a system without a minimum wage. We also find that equity matters; respondents are 11.1 percentage points less likely to support a minimum wage if it disproportionately affects minorities and females.
CitationLennon, Conor, Jose Fernandez, Stephan Gohmann, and Keith Teltser. 2019. "Minimum Wages, Morality, and Efficiency: A Choice Experiment." AEA Papers and Proceedings, 109: 176-81. DOI: 10.1257/pandp.20191088
- D12 Consumer Economics: Empirical Analysis
- J38 Wages, Compensation, and Labor Costs: Public Policy