Abstract
That an increase in the minimum wage or minimum wage coverage results in an increase in the incidence of nepotism is empirically tested using 1972 data on job-seeking methods used by American workers. The elasticity of the incidence of nepotism with respect to the level of the minimum wage and minimum wage coverage in 1977 is estimated at between .38 and .68.
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I would like to thank Peter Montiel and Geoffrey Woglom for their helpful comments and suggestions and Bruce Chesebrough for providing the stimulus to write this paper; remaining errors are my own.
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Kaufman, R.T. Nepotism and the minimum wage. Journal of Labor Research 4, 81–89 (1983). https://doi.org/10.1007/BF02685505
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DOI: https://doi.org/10.1007/BF02685505