Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126285
Authors: 
Meer, Jonathan
West, Jeremy
Year of Publication: 
2015
Series/Report no.: 
Upjohn Institute Working Paper 15-233
Abstract: 
The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment. We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels. We conduct simulations showing that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects. Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years. These effects are most pronounced for younger workers and in industries with a higher proportion of low-wage workers.
Subjects: 
minimum wage
employment growth
administrative data
low-wage workers
JEL: 
J31
J38
J63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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