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We assess the impact of nationwide minimum wages on employment throughout the whole wage distribution by exploiting geographical variation in the level of wages. We find a substantial increase in wages at the bottom of the wage distribution, while we detect a small, statistically insignificant negative effect on employment. Combining the estimated change in the wage distribution with a tax and benefit microsimulation model, we show that the minimum wage generates considerable proportional income gains up to the middle of the household income distribution.
Authors
![Giulia Giupponi](/sites/default/files/styles/square_desktop/public/2022-07/Giulia%20Giupponi.jpg?itok=Vc7Jzdwm)
Research Fellow Bocconi University
Giulia, an Assistant Professor of Economics at Bocconi University, studies the employment and welfare effects of social insurance and minimum wages.
![Robert Joyce](/sites/default/files/styles/square_desktop/public/2022-06/Rob_Joyce.jpg?itok=4UaBJrrb)
Deputy Director
Robert is a Deputy Director. His work focuses on primarily on the labour market, income and wealth inequality, and the design of the welfare system.
![Attila Lindner](/sites/default/files/styles/square_desktop/public/2022-07/Attila_Lindner.jpg?itok=B5wCZYzQ)
Research Fellow University College London
Attila is an IFS Research Fellow, an Associate Professor of Economics at the University College London and Adjust Professor at the University of Oslo.
![Tom Waters](/sites/default/files/styles/square_desktop/public/2022-06/Tom_Waters.jpg?itok=ZegjOaxl)
Associate Director
Tom is an Associate Director at the IFS and Head of the Income, Work and Welfare sector.
![Thomas Wernham](/sites/default/files/styles/square_desktop/public/2022-06/Thomas_Wernham.jpg?itok=F0nQGrpb)
Research Economist
Tom is a Research Economist in the Income, Work and Welfare sector, having joined the IFS in 2020.
![Xiaowei Xu](/sites/default/files/styles/square_desktop/public/2022-06/Xiaowei_Xu.jpg?itok=jkRw9DDN)
Senior Research Economist
Xiaowei joined the IFS in 2018 and works in the Income, Work and Welfare sector.
Journal article details
- DOI
- 10.1086/728471
- Publisher
- University of Chicago Press
- ISSN
- 0734-306X
- Issue
- Volume 42, Issue S1, April 2024, pages 293-333
Suggested citation
Giupponi, G et al. (2024). 'The employment and distributional impacts of nationwide minimum wage changes' 42(S1/2024), pp.293–333.
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