Minimum wage increases create spillover effects on higher levels of pay
Empirical studies confirm that minimum wage increases generate meaningful spillover effects, influencing wage structures and income distributions beyond the base pay level.
The claim is specific, empirical, and testable. Multiple retrieved papers explicitly study and confirm wage spillovers or effects across the wage distribution resulting from minimum wage changes. There are no papers refuting this phenomenon.
Pablo R. Fajnzylber. Minimum Wage Effects Throughout the Wage Distribution: Evidence from Brazil's Formal and Informal Sectors. 2001. https://doi.org/10.2139/ssrn.269622
Paper [0] finds significant minimum wage effects across the whole wage distribution in both formal and informal sectors.
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Sinem Sefil‐Tansever, Ensar Yılmaz. Minimum wage and spillover effects in a minimum wage society. 2023. https://doi.org/10.1111/labr.12259
Paper [1] demonstrates that minimum wage policies reduce income disparities and influence wage structures above the minimum level.
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