Understanding the costs and benefits of regulating wages is an important goal of economic analysis and research.
In a time of increasing income inequality, there is much debate around minimum wage laws and “living wage” ordinances. Policymakers must understand how these laws, tax systems and other federal and state regulations influence compensation and employer costs to reduce that inequality.
Other laws and regulations attempt to reduce wage inequality and eliminate discrimination against racial minorities, women, older workers and workers with disabilities. The Affordable Care Act has caused changes for employers regarding the provision of health insurance.
Higher-wage workers can bargain for more pay, others more likely to quit
Getting a raise in a secondary job can lead to better pay at the primary job, but only for higher-wage workers.
Seasonal workers don’t make up for lost hours by taking other jobs
New research finds that seasonal workers and others in their household don’t make up for the lost earnings during their off-season by finding other work.