Employment Effects of the 2009 Minimum Wage Increase: New Evidence from State-Based Comparisons of Workers by Skill Level

2014 ◽  
Vol 14 (3) ◽  
pp. 695-721 ◽  
Author(s):  
Saul D. Hoffman
Keyword(s):  
Minimum Wage ◽  
Fixed Effects ◽  
Population Survey ◽  
Demographic Characteristics ◽  
Minimum Wage Increase ◽  
Employment Effects ◽  
Federal Minimum Wage ◽  
The Us ◽  
Before And After ◽  
New Evidence

Abstract In July, 2009, when the US Federal minimum wage was increased from $6.55 to $7.25, individuals in nearly one-third of all states were unaffected, since the state minimum wage already exceeded $7.25. We use this variation to make comparisons of the employment of low-skill workers with their peers across states and with workers within states who were arguably unaffected by the increase, using DID and DIDID methods. Our data come from the 2009 Current Population Survey, 4 and 5 months before and after the increase. We find little evidence of negative employment effects for teens or less-educated adults. Further control for demographic characteristics and state fixed effects have relatively small effects on the size and significance of estimated effects.

scholarly journals Are Local Minimum Wages Absorbed by Price Increases? Estimates from Internet-Based Restaurant Menus

ILR Review ◽  
2017 ◽  
Vol 71 (1) ◽  
pp. 35-63 ◽  
Author(s):  
Sylvia Allegretto ◽  
Michael Reich
Keyword(s):  
Minimum Wage ◽  
Economic Activity ◽  
Minimum Wage Increase ◽  
San Jose ◽  
Employment Effects ◽  
Price Increases ◽  
Before And After ◽  
The Cost ◽  
Price Differences ◽  
The City

The authors analyze 884 Internet-based restaurant menus from inside and outside San Jose, California, which they collected before and after the city implemented a 25% minimum wage increase in 2013. Their findings suggest that nearly all of the cost increase was passed through to consumers, as prices rose 1.45% on average. Minimum wage price elasticities averaged 0.058 for all restaurants and ranged from 0.044 to 0.109, depending on the type of restaurant. The authors’ estimate of payroll cost increases net of turnover savings is consistent with these findings. Equally important, border effects for restaurants are smaller than is often conjectured. Price differences among restaurants that are one-half mile from either side of the policy border are not competed away, indicating that restaurant demand is spatially inelastic. These results imply that citywide minimum wage policies need not result in substantive negative employment effects nor shifts of economic activity to nearby areas.

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

Do Minimum Wage Increases Affect SNAP Benefits?

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Thomas Snyder ◽  
Senayt Rinkevich ◽  
Weici Yuan
Keyword(s):  
Minimum Wage ◽  
Fixed Effects ◽  
State Level ◽  
Minimum Wages ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Assistance Program ◽  
Data Set ◽  
Nutrition Assistance ◽  
Wage Increases

Abstract The recession of the late 2000s accompanied a steep increase in the number of people on the U.S. federal Supplemental Nutrition Assistance Program (SNAP). The economy recovered, yet the number of people on SNAP remained relatively high. This study investigates whether increases in minimum wages affected the number of SNAP beneficiaries and the per-capita cost of the program. Economic reasoning suggests a minimum wage increase can decrease poverty through higher wages or increase poverty by enacting a barrier to work. Using a panel data set (1997–2015) at the state level, two-way fixed effects estimates demonstrate a nonlinear relationship between minimum wages and SNAP benefits. At low minimum wages, increases in the minimum wage reduce SNAP enrollment and benefits; however, at high minimum wages, increases in the minimum wage increase SNAP enrollment and benefits. Twenty states have already passed the minimum wage turning point. Further increases can lead to more SNAP participants.

scholarly journals Do Minimum Wages Reduce Employment? A Case Study of California, 1987–89

ILR Review ◽  
1992 ◽  
Vol 46 (1) ◽  
pp. 38-54 ◽  
Author(s):  
David Card
Keyword(s):  
Minimum Wage ◽  
Population Survey ◽  
Labor Market Outcomes ◽  
Retail Trade ◽  
Published Data ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Market Outcomes ◽  
Teenage Employment

In July 1988, California's minimum wage rose from $3.35 to $4.25. During the previous year, 11% of workers in the state and 50% of California teenagers had earned less than the new state minimum. Using published data and samples from the Current Population Survey, the author compares changes in the labor market outcomes of California workers to the corresponding changes in a group of states with no increase in the minimum wage. The minimum wage increase raised the earnings of low-wage workers by 5–10%. Contrary to conventional predictions, however, there was no decline in teenage employment, or any relative loss of jobs in retail trade.

scholarly journals Time Use, Emotional Well-Being, and Unemployment: Evidence from Longitudinal Data

2012 ◽  
Vol 102 (3) ◽  
pp. 594-599 ◽  
Author(s):  
Alan B Krueger ◽  
Andreas I Mueller
Keyword(s):  
Longitudinal Data ◽  
Time Use ◽  
Fixed Effects ◽  
Well Being ◽  
Home Production ◽  
Before And After ◽  
The Unemployed ◽  
New Evidence

This paper provides new evidence on the time use and emotional well-being of unemployed individuals in the weeks before and after starting a new job. The major findings are: (1) time spent on home production drops sharply at the time of re-employment, even when controlling for individual fixed effects; (2) time spent on leisure-related activities, which the unemployed find less enjoyable, drops on re-employment, but less so when controlling for individual fixed effects; (3) the unemployed report higher levels of sadness during specific episodes of the day than the employed; and (4) sadness decreases abruptly at the time of re-employment.

Mortality Before and After Border Wall Construction Along the US–Mexico Border, 1990–2017

2021 ◽  
pp. e1-e9
Author(s):  
Joseph Dov Bruch ◽  
Ozlem Barin ◽  
Atheendar S. Venkataramani ◽  
Zirui Song
Keyword(s):  
Fixed Effects ◽  
Population Characteristics ◽  
Sensitivity Analyses ◽  
Percentage Point Increase ◽  
The Us ◽  
Before And After ◽  
Quasi Experimental ◽  
Mexico Border ◽  
Wall Construction ◽  
Us Mexico Border

Objectives. To evaluate changes in mortality in US counties along the US–Mexico border in which there was substantial new border wall construction after the Secure Fence Act of 2006 relative to border counties in which there was no such border wall construction. Methods. Using complete 1990 to 2017 mortality microdata and a quasi-experimental difference-in-differences design, we evaluated changes in overall (all-cause) mortality, mortality from drug overdose, and mortality from homicide in the 10 counties with substantial new border wall construction and 11 counties with no such construction. We fit a linear model, adjusting for population characteristics and county and year fixed effects, with Bonferroni adjustments for multiple comparisons. Sensitivity analyses included the addition of adjacent inland counties and modifications to the statistical model. Results. Relative to counties without substantial new border wall construction, counties in which a substantial amount of new border wall was constructed exhibited a nonsignificant 0.02-percentage-point increase (95% confidence interval [CI] = −0.06, 0.10; P > .99) in overall mortality after construction. Border wall construction was not associated with changes in either deaths from overdose or deaths from homicide. Conclusions. Wall construction along the US–Mexico border after the Secure Fence Act of 2006 was not associated with discernible changes in mortality. (Am J Public Health. Published online ahead of print June 29, 2021: e1–e4. https://doi.org/10.2105/AJPH.2021.306329 )

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