The effect of an increase in federal minimum wage on the U.S. hotel industry: a difference-in-differences approach

2021 ◽  
pp. 1-14
Author(s):  
Hyoung Ju Song ◽  
Jihwan Yeon ◽  
Seoki Lee ◽  
Zhou Li
Keyword(s):  
Minimum Wage ◽  
Hotel Industry ◽  
Difference In Differences ◽  
Federal Minimum Wage ◽  
The U.S

Was it worth it? The impact of the German minimum wage on union membership of employees

2021 ◽  
pp. 0143831X2110358
Author(s):  
Simon Ress ◽  
Florian Spohr
Keyword(s):  
Propensity Score ◽  
Social Security ◽  
Labour Market ◽  
Propensity Score Matching ◽  
Minimum Wage ◽  
Trade Union ◽  
Union Membership ◽  
Difference In Differences ◽  
German Trade ◽  
The Impact

This contribution scrutinises how introducing a statutory minimum wage of EUR 8.50 per hour, in January 2015, impacted German employees’ decision with regard to union membership. Based on representative data from the Labour Market and Social Security panel, the study applies a logistic difference-in-differences propensity score matching approach on entries into and withdrawals from unions in the German Trade Union Confederation (Deutscher Gewerkschaftsbund, DGB). The results show no separate effect on withdrawals from or entries into unions after the minimum wage introduction for those employees who benefited financially from it, but a significant increase of entries overall. Thus, unions’ campaign for a minimum wage strengthened their position in total but did not reverse the segmentation of union membership patterns.

scholarly journals Exploiting the Irish Border to Estimate Minimum Wage Impacts in Northern Ireland

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Duncan McVicar ◽  
Andrew Park ◽  
Seamus McGuinness
Keyword(s):  
Northern Ireland ◽  
Minimum Wage ◽  
Research Design ◽  
The Other ◽  
Living Wage ◽  
Employment Rate ◽  
Small Decrease ◽  
Difference In Differences ◽  
Hours Worked ◽  
The Uk

AbstractThis paper examines the impacts of the introduction of the UK National Minimum Wage (NMW) in 1999 and the introduction of the UK National Living Wage (NLW) in 2016 in Northern Ireland (NI) on employment and hours. NI is the only part of the UK with a land border where the NMW and NLW cover those working on one side of the border but not those working on the other side of the border (i.e., Republic of Ireland). This discontinuity in minimum wage coverage enables a research design that estimates the impacts of the NMW and NLW on employment and hours worked using difference-in-differences estimation. We find a small decrease in the employment rate of 22–59/64-year-olds in NI, of up to 2% points, in the year following the introduction of the NMW, but no impact on hours worked. We find no clear evidence that the introduction of the NLW impacted either employment or hours worked in NI.

scholarly journals The Washington State Merged Longitudinal Administrative Database

2018 ◽  
Vol 3 (5) ◽  
Author(s):  
Jennifer Romich ◽  
Mark Long ◽  
Scott Allard ◽  
Anne Althauser
Keyword(s):  
Minimum Wage ◽  
Race And Ethnicity ◽  
Data Access ◽  
Well Being ◽  
Vital Statistics ◽  
Washington State ◽  
Economic Effects ◽  
Administrative Database ◽  
Administrative Dataset ◽  
Federal Minimum Wage

This paper describes a uniquely comprehensive database constructed from merged state administrative data.  State Unemployment Insurance (UI) systems provide an important source of data for understanding employment effects of policy interventions but have also lack several key types of information: personal demographics, non-earnings income, and household associations.  With UI data, researchers can show overall earnings or employment trends or policy impacts, but cannot distinguish whether these trends or impacts differ by race or gender, how they affect families and children, or whether total income or other measure of well-being change. This paper describes a uniquely comprehensive new administrative dataset, the Washington Merged Longitudinal Administrative Database (WMLAD), created by University of Washington researchers to examine distributional and household economic effects of the Seattle $15 minimum wage ordinance, an intervention that more than doubled the federal minimum wage.  WMLAD augments UI data with state administrative voter, licensing, social service, income transfer, and vital statistics records. The union set of all individuals who appear in any of these agency datasets will provide a near-census of state residents and will augment UI records with information on age, sex, race/ethnicity, public assistance receipt, and household membership. In this paper, we describe 1.) our relationship with the Washington State Department of Social and Health Services that permits this data access and allows construction of this dataset using restricted personal identifiers; 2.) the merging and construction process, including imputing race and ethnicity and constructing quasi-households from address co-location; and 3.) planned benchmarking and analysis work.

scholarly journals RAISING THE MINIMUM WAGE OF THE US WORKFORCE

2021 ◽  
pp. 41-43
Author(s):  
Kshama Mumbai
Keyword(s):  
Minimum Wage ◽  
The United States ◽  
Purchasing Power ◽  
Legislative Action ◽  
The Great Depression ◽  
Federal Minimum Wage ◽  
Fair Labor Standards Act ◽  
To Come ◽  
And Gender ◽  
Wage Floor

“The Lawrence Textile Strike, also known as the Bread and Roses Strike”, prompted the first minimum wage law in the United States in 1912. Various states followed suit over the next two decades, and in 1938, at the height of the Great Depression, Congress passed the Fair Labor Standards Act, which created a federal minimum wage (FLSA).The basic incentive behind the introduction of the Act was to reduce income inequality.A rise in minimum wage acts as a form of relocation of wealth from higher-income people to lower-income people. In principle, Congress amends the FLSA on a regular basis to raise the federal minimum wage to levels necessary for even the lowest-paying workforces in the economy.It also aims to help low-wage workers benefit from overall economywide advances in living standards. However, this has historically not always been the case. In 1968, The Poor People’s 1 Campaign started because of not raising the minimum wage to sufficient levels . The explicit purpose of the federal minimum wage is to help increase consumer purchasing power which stimulates the economy and to keep America's workforces out of poverty.However,the law failed to include the automatic cost of living adjustments and led to inflation eroding the real value of the minimum wage over time. There is a dire need for legislative action to raise the nation’s wage floor, more so than ever during the COVID-19 pandemic.Unless consumer's purchasing power is increased,it will be difficult to come out of this recession.Further,the minimum wage is a direct concern for poverty levels and gender / racial inequality.This paper aims to analyze previous work on the issue and provide further recommendations for the same.

The Effect of the Tipped Minimum Wage on Employees in the U.S. Restaurant Industry

2014 ◽  
Vol 80 (3) ◽  
pp. 633-655 ◽  
Author(s):  
William E. Even ◽  
David A. Macpherson
Keyword(s):  
Minimum Wage ◽  
Restaurant Industry ◽  
The U.S

scholarly journals Employment Effects of the Federal Minimum Wage

10.3386/w0812 ◽  
1981 ◽  
Author(s):  
John Boschen ◽  
Herschel Grossman
Keyword(s):  
Minimum Wage ◽  
Employment Effects ◽  
Federal Minimum Wage

Shrouded Prices and Firm Reputation: Evidence from the U.S. Hotel Industry

2020 ◽  
Author(s):  
Bennett Chiles
Keyword(s):  
Rating Scale ◽  
Causal Effect ◽  
Hotel Industry ◽  
Firm Characteristics ◽  
Firm Reputation ◽  
Using Data ◽  
Online Travel ◽  
The Impact ◽  
Shed Light ◽  
The U.S

Firms in many industries engage in price obfuscation—tactics that intentionally make prices more difficult for consumers to discern. Although existing research has focused on the short-term financial gains that motivate firms to obfuscate, reputational concerns may at least partially counteract these incentives if consumers punish deceptive firms via loss of loyalty in future transactions and/or publicly observable negative feedback. This paper addresses the latter possibility, exploring the impact of mandatory shrouded surcharges on firm reputation in the U.S. hotel industry. Using data collected from two major online travel sites, I exploit differences in surcharge disclosure across booking channels to identify the causal effect of hidden “resort fees” on traveler ratings. I find that hidden fees decrease ratings by roughly 0.15 points (on a rating scale ranging from 1 to 5). The magnitude of this effect varies based on firm characteristics, and this variation is consistent with observed heterogeneity in resort fee adoption patterns: when the expected punishment is more severe, firms are substantially less likely to adopt shrouded surcharges. Results shed light on the extent to which reputational mechanisms may act as a check against price obfuscation and other similar practices intended to exploit boundedly rational consumers. This paper was accepted by Eric Anderson, marketing.

scholarly journals The Effect of Minimum Wages on Low-Wage Jobs*

2019 ◽  
Vol 134 (3) ◽  
pp. 1405-1454 ◽  
Author(s):  
Doruk Cengiz ◽  
Arindrajit Dube ◽  
Attila Lindner ◽  
Ben Zipperer
Keyword(s):  
Minimum Wage ◽  
State Level ◽  
The United States ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Employment Effect ◽  
Hourly Wage ◽  
Difference In Differences ◽  
Bottom Part ◽  
Demographic Groups

Abstract We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach. We first estimate the effect of the minimum wage increase on employment changes by wage bins throughout the hourly wage distribution. We then focus on the bottom part of the wage distribution and compare the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it to infer the employment effect. We find that the overall number of low-wage jobs remained essentially unchanged over the five years following the increase. At the same time, the direct effect of the minimum wage on average earnings was amplified by modest wage spillovers at the bottom of the wage distribution. Our estimates by detailed demographic groups show that the lack of job loss is not explained by labor-labor substitution at the bottom of the wage distribution. We also find no evidence of disemployment when we consider higher levels of minimum wages. However, we do find some evidence of reduced employment in tradeable sectors. We also show how decomposing the overall employment effect by wage bins allows a transparent way of assessing the plausibility of estimates.

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