Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/325079 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18021
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This study analyzes, for the first time, the effect of increases in the minimum wage on the labor market outcomes of working age adults with cognitive disabilities, a vulnerable and low-skilled sector of the actual and potential labor pool. Using data from the American Community Survey (2008-2023), we estimated effects of the minimum wage on employment, labor force participation, weeks worked, and hours worked among working age individuals with cognitive disabilities using a generalized difference-in-differences research design. We found that a higher effective minimum wage leads to reduced employment and labor force participation among individuals with cognitive disabilities but has no significant effect on labor supply at the intensive margin for this group. Adverse impacts were particularly pronounced for those with lower educational attainment. In contrast, we found no significant labor market effects of an increase in the minimum wage for individuals with physical disabilities or in the non-disabled population.
Subjects: 
american community survey
labor market outcomes
employment
cognitive disability
minimum wage
JEL: 
J14
J2
Document Type: 
Working Paper

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