The effects of minimum wages on employment and prices—Evidence from the hairdressing sector

Max Kunaschk

Labour Economics, 2024, vol. 88, issue C

Abstract: This paper provides comprehensive evidence on the labor and product market effects of a high-impact minimum wage introduction in the highly competitive hairdressing sector. Using detailed administrative data, I find negligible overall employment effects, even though the minimum wage substantially increased hourly wages. However, sub-group analyses reveal considerable heterogeneity in the estimated employment effects and suggest shifts away from marginal towards regular employment. Analyses of the price effects suggest that the reform increased output prices considerably, implying that consumers largely paid for the minimum wage.

Keywords: Minimum wage; Competitive labor markets; Price pass-through (search for similar items in EconPapers)
JEL-codes: J21 J23 J31 J38 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:88:y:2024:i:c:s0927537124000356

DOI: 10.1016/j.labeco.2024.102540

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