Does measurement error explain the increase in subminimum wage payment following minimum wage increases?

• Published in: Economics letters Vol. 217; p. 110638
• Main Authors: Clemens, Jeffrey, Strain, Michael R.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.08.2022
• Subjects: Minimum wage; Noncompliance; Subminimum wage; K42; Minimum wage; J08; Noncompliance; J38; Subminimum wage

In analyses of minimum wages, positive “ripple effects” and subminimum wages are difficult to distinguish from measurement error. Indeed, prior work posits that a simple, symmetric measurement error process may underlie both phenomena in Current Population Survey data for the full working age popula...