The Effect of Recent Increases in the U.S. Minimum Wage: Results from Three Data Sources
John Addison (),
McKinley L. Blackburn and
Chad D. Cotti Additional contact information McKinley L. Blackburn: Department of Economics, Moore School of Business, University of South Carolina, USA
Chad D. Cotti: Department of Economics, University of Wisconsin-Oshkosh, USA
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.