This review focuses on issues of methodology in minimum wage research, with particular attention to measures of outcomes and of the minimum wage, and to empirical methods. We begin with an overview of measures and methods, followed with a discussion of issues of identification, of accuracy in hypothesis testing, and of distinctions between static and dynamic models. The second section of the paper reviews research on the minimum wage in developing countries with respect to measures and methodology since 2000.

1. Introduction 2. Models and Measures 2.1 The “Canonical Model” 2.2 Quasi‐Experiments 2.3 Key Variables: The Minimum Wage and Outcome Measures 2.3 (a) Measures of Employment 2.3 (a1) Crude Measures of Employment 2.3 (a2) Measures of Hours 2.3 (a3) Measures of Formal and Informal Sectors 2.3 (b) The Minimum Wage 2.3 (c) Wages 3. Emerging Issues of Methodology: 3.1 Identification 3.2 Biased or Inconsistent Standard Errors 3.3 Static and Dynamic Modeling 4. Contemporary Research on the Minimum Wage in Low Income and Developing Countries 4.1 Articles Addressing Employment 4.2 The Minimum Wage and Earnings Inequality 4.3 The Minimum Wage and Inflation 5. Advancing Research on the Minimum Wage in Developing and Low Income Countries Bibliography Conditions of Work and Employment Series