Who Bears the Cost? High-Frequency Evidence on Minimum Wage Effects and Amenity Pass-Through in Spot Labor Markets

Hayato Kanayama, Sho Miyaji and Suguru Otani

Papers from arXiv.org

Abstract: This paper provides causal evidence on the short-run effects of minimum wage hikes in a spot labor market, using confidential contract-level data from Timee, a Japanese job-matching platform. Leveraging high-frequency variation and a bin-level difference-in-differences design, we find a 2 percentage point decline in employment within affected wage bins, with losses concentrated below the new threshold. Transportation reimbursement--a flexible nonwage amenity--remains largely unchanged, indicating limited pass-through. These findings suggest that spot labor markets adjust rapidly through wage compliance, with the cost burden borne by establishments rather than offset through reductions in job amenities.

Date: 2025-05, Revised 2025-05
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