The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.
Abstract
Labor market institutions like unions and minimum wage laws represent some of the most direct levers available to a policymaker with a mobility-focused agenda. Both have the potential to increase absolute mobility by ensuring that lower- and middle-income workers receive a slice of the economic pie. At the same time, however, unions and minimum wage laws can lead to labor market rigidities that make it more difficult for people to move up the economic ladder. This review summarizes the complex and controversial research on the tradeoffs inherent in changes in minimum wage laws and unionization levels. (Review 8 of 11.)
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