Charles Brown

TL;DR: While standard methods will not eliminate the bias when measurement errors are not classical, one can often use them to obtain bounds on this bias, and it is argued that validation studies allow us to assess the magnitude of measurement errors in survey data, and the validity of the classical assumption.

TL;DR: In this article, the authors consider six explanations for the positive relationship between employer size and wages: large employers hire higher quality workers; offer inferior working conditions; make more use of high wages to forestall unionization; have more ability to pay high wages; face smaller pools of applicants relative to vacancies; and are less able to monitor their workers.

TL;DR: In this article, the authors consider six explanations for the positive relationship between employer size and wages: large employers hire higher-quality workers, offer inferior working conditions, make more use of high wages to forestall unionization, have more ability to pay high wages, face smaller pools of applicants relative to vacancies, and are less able to monitor their workers.

Abstract: In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence of its effect on employment and unemployment. Our discussion of the theory emphasizes recent work using two-sector and heterogeneous-worker models. We then summarize and evaluate the large literature on employment and unemployment effects of the minimum on teenagers. Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment in low-wage industries and areas.

TL;DR: In this article, the authors survey theoretical models of the effect of the minimum wage and evidence of its effect on employment and unemployment, focusing on two-sector and heterogeneous-worker models.