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...

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...

After nearly a decade of relative quiet, the increases in the US minimum wage that began in 1990 have coincided with a renewed interest in its effects. Recent work suggests that a relative consensus on the effects of the minimum wage on employment came undone; on balance, however, the recent...