Minimum Wage Laws and Job Search

Vitor C. Melo, Christopher Kaiser, David Neumark, Liya Palagashvili and Michael D. Farren

No 33433, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A large theoretical literature on job search predicts that a higher minimum wage will increase the number of job seekers for affected jobs, which can lead to more job creation and higher employment. This paper uses novel data on job search in all U.S. states to examine the effect of minimum wage increases on the number of job seekers for low-skilled positions. We find no evidence that higher minimum wages increase job search for low-skilled jobs. Instead, the evidence suggests that higher minimum wages decrease the number of workers seeking employment.

JEL-codes: J23 J38 (search for similar items in EconPapers)
Date: 2025-01
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