Regressive Effects of Regulation on Wages

25 Pages Posted: 12 Feb 2018 Last revised: 5 Mar 2018

See all articles by James B. Bailey

James B. Bailey

Providence College Department of Economics; Temple University - Department of Economics; Creighton University - Department of Economics

Diana Weinert Thomas

Creighton University

Joseph R. Anderson

Creighton University - College of Business Administration

Date Written: February 9, 2018

Abstract

A growing body of literature analyzing the distributive consequences of regulation suggests that regulation may have particularly detrimental effects on lower income households. Regulation can be regressive if it represents the preferences of the wealthy while imposing costs on all households. The specific channel by which regulation may impose costs on lower income households is through its effect on prices and wages. In this issue, Dustin Chambers, Courtney Collins, and Allan Krause (2018) find that regulation has regressive effects through its effect on consumer prices because lower income consumers tend to spend a larger percentage of their budget on highly regulated goods and services. In this paper, we seek to analyze the effect of regulation on wages across different income levels and occupations.

Keywords: regulation, wages, inequality, employment

JEL Classification: K23, L51

Suggested Citation

Bailey, James B. and Thomas, Diana Weinert and Anderson, Joseph R., Regressive Effects of Regulation on Wages (February 9, 2018). Available at SSRN: https://ssrn.com/abstract=3121197 or http://dx.doi.org/10.2139/ssrn.3121197

James B. Bailey

Providence College Department of Economics ( email )

1 Cunningham Sq
Providence, RI 02918
United States

HOME PAGE: http://https://economics.providence.edu/faculty-members/james-bailey/

Temple University - Department of Economics ( email )

Philadelphia, PA 19122
United States

HOME PAGE: http://sites.temple.edu/jamesbailey/

Creighton University - Department of Economics ( email )

2500 California Plaza
Omaha, NE 68178
United States

Diana Weinert Thomas (Contact Author)

Creighton University ( email )

2500 California Plaza
Omaha, NE 68178
United States

Joseph R. Anderson

Creighton University - College of Business Administration ( email )

United States

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