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1 1 (1981)

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The Impact  of the Minimum  Wage  on Regional Labor Markets, by
Ronald  J. Krumm,  examines  the consequences of changes  in the
federal minimum  wage  for employment  in different industries and
regions. This study finds that lower-skill workers tend to be disem-
ployed when  minimum  wages are applied uniformly to all industries.
This results in a ripple effect on the wages of those remaining em-
ployed, increasing the earnings of higher-skill workers. When min-
imum   wages  are applied only in selected industries, higher-skill
workers tend to flow into jobs in the covered industries, while lower-
skill workers flow to the uncovered industries. The net result can be
a mere switching of workers employed in various industries without
any effect on employment or earnings. Similarly, the study finds that
regional differences in real minimum wages, which result from re-
gional differences in the cost of living, lead to flows of low- and
higher-skill workers that lessen the impact of the national minimum
wage  in nominally low-wage regions.
    Ronald J. Krumm  is a research fellow at the University of Chi-
cago.


ISBN 0-8447-3425-X  clothbound edition
ISBN 0-8447-3426-8 paperback edition












                                   ISBN  978-0-8447-3426-2





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