Class Year
2015
Document Type
Article
Abstract
Anker (2006) proposed a new methodology for calculating the living wage in countries around the world. By looking at OECD nations between 2000-2010, we look to see if countries with a national minimum wage higher than this living wage value see a notable difference in the effect of the minimum wage on income inequality. Our results show that countries with the minimum wage higher than the living wage value do see lower inequality, although there is a key value of the minimum wage, at which countries start to see disemployment effects that increase inequality.
Recommended Citation
Litwin, Benjamin S.
(2015)
"Do Living Wages alter the Effect of the Minimum Wage on Income Inequality?,"
Gettysburg Economic Review: Vol. 8, Article 5.
Available at:
https://cupola.gettysburg.edu/ger/vol8/iss1/5
Included in
Income Distribution Commons, Inequality and Stratification Commons, International and Area Studies Commons, International Economics Commons, Labor Economics Commons