Do Minimum Wages Raise the NAIRU? : Topics in Macroeconomics uses cookies, tags, and tracking settings to store information that help give you the very best browsing experience.
To understand more about cookies, tags, and tracking, see our Privacy Statement
I accept all cookies for the De Gruyter Online site

Jump to ContentJump to Main Navigation

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Mertens, Karel

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Kambourov, Gueorgui / Lambertini, Luisa / Pavoni, Nicola / Ruhl, Kim / Nimark, Kristoffer / Wang, Pengfei

IMPACT FACTOR increased in 2014: 0.389
5-year IMPACT FACTOR: 0.406

SCImago Journal Rank (SJR) 2014: 0.610
Source Normalized Impact per Paper (SNIP) 2014: 0.518
Impact per Publication (IPP) 2014: 0.419

30,00 € / $42.00 / £23.00

Get Access to Full Text

Do Minimum Wages Raise the NAIRU?

Peter Tulip1

1Federal Reserve Board,

Citation Information: Topics in Macroeconomics. Volume 4, Issue 1, ISSN (Online) 1534-5998, DOI: 10.2202/1534-5998.1163, April 2004

Publication History

Published Online:

Maybe a lot. The ratio of the minimum wage to the average wage enters a Phillips-curve equation with a coefficient that is highly significant, stable, and robust. One interpretation of these results is that the relative level of the minimum wage affects the Non-Accelerating Inflation Rate of Unemployment or NAIRU. My estimates are consistent with the reduction in the relative level of the minimum wage since 1980 lowering the U.S. NAIRU about 1½ percentage points, while raising the NAIRU in continental Europe. However, other interpretations are also possible.

Keywords: NAIRU; minimum wage

Comments (0)

Please log in or register to comment.