Research Report Labor Market Institutions and Economic Mobility
Seth Zimmerman
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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.)
Research Areas Economic mobility and inequality
Tags Income and wealth distribution
Policy Centers Income and Benefits Policy Center