The Economist feature article “Who pays?”

David Neumark of the University of California, Irvine, and EmployStats academic affiliate, has been featured in the finance and economics section of The Economist’s 2020 edition.  The article focuses on the topic of wage floors and the cause and effect of increasing minimum wage requirements. A minimum wage policy raises wages for workers, but the money required to support higher minimum wages has a potential to hit poorer bosses’ harder.

Professor Neumark’s paper, co-authored by Lev Drucker and Katya Mazirov, referenced in The Economist article, examines the potential effect increasing the minimum wage may have on businesses.  The author’s paper titled “Who Pays for and Who Benefits from Minimum Wage Increases? Evidence from Israeli Tax Data on Business Owners and Workers” offers insight into potential unintended consequences of increased wage floors.

The Economist article can be found here.

Drucker, Mazirov, and Neumark’s paper can be found here.