Employment Effects of the 2009 Minimum Wage Increase: Evidence from State Comparisons of At-Risk Workers (Revised Version)

Saul Hoffman () and Chenglong Ke ()
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Chenglong Ke: Department of Economics,University of Delaware

No 11-16, Working Papers from University of Delaware, Department of Economics

Abstract: In July, 2009, the U.S. Federal minimum wage was increased from $6.55 to $7.25. Individuals in some states were unaffected by this increase, since the state minimum wage already exceeded $7.25. We use this variation to make comparisons of the employment of “at-risk” workers with their peers across states and with workers within states who were arguably unaffected by the increase. Our data come from the 2009 CPS, four and five months before and after the increase. We find little evidence of negative employment effects for teens or less- educated adults, but some stronger evidence of a negative effect for young adults with a high school degree or less. Control for demographic characteristics reduces the size and significance of the estimated effects.

Keywords: Minimum; Wage (search for similar items in EconPapers)
JEL-codes: J08 J21 J38 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011
New Economics Papers: this item is included in nep-lab and nep-lma
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Citations: View citations in EconPapers (3)

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