Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185327 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11867
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In this paper, we discuss the importance of sample size in the evaluation of minimum wage effects. We first show which sample sizes are necessary to make reliable statements about the effects of minimum wages on binary outcomes, and second how to determine these sample sizes. This is particularly important when interpreting statistically insignificant effects, which could be due to (i) the absence of a true effect or (ii) lack of statistical power, which makes it impossible to detect an effect even though it exists. We illustrate this for the analysis of labour market transitions using two data sets which are particularly important in the minimum wage research for Germany, the Integrated Labour Market Biographies (IEB) and the Socio-Economic Panel (SOEP).
Subjects: 
power calculation
sample size
significance testing
evaluation
minimum wage
JEL: 
C12
C80
J38
Document Type: 
Working Paper

Files in This Item:
File
Size
398.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.