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The Effect of Recent Increases in the U.S. Minimum Wage: Results from Three Data Sources

John Addison, McKinley Blackburn (blackbrn@moore.sc.edu) and Chad Cotti

Working Paper series from Rimini Centre for Economic Analysis

Abstract: This paper investigates the impact on earnings and employment of substantive increases in the minimum wage under the Fair Minimum Wage Act of 2007. Against the backdrop of a thin contemporary literature offering mixed results, our study uses three different data sets, and three different estimation strategies for addressing geographically-disparate trends. Despite the concatenation of seemingly large wage increases and a soft labor market, our evidence is generally unsupportive of material disemployment effects among industrial and demographic groups typically associated with low-wage employment. Our results are consistent with minimum wage workers being concentrated in sectors of the economy for which the labor-demand response to wage increases is seemingly modest.

Keywords: minimum wages; disemployment; earnings; low-wage sectors; geographically-disparate employment trends; recession (search for similar items in EconPapers)
JEL-codes: J2 J3 J4 J8 (search for similar items in EconPapers)
Date: 2012-07
New Economics Papers: this item is included in nep-lab and nep-lma
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:58_12

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