Local minimum wage laws, boundary discontinuity methods, and policy spillovers

Ekaterina Jardim, Mark Long, Robert Plotnick, Jacob Vigdor and Emma Wiles

Journal of Public Economics, 2024, vol. 234, issue C

Abstract: We use geographically precise longitudinal employment data documenting worker job-to-job mobility to study policy spillovers in the context of three local minimum wage increases. Estimated spillover impacts on wages and hours are statistically significant, geographically diffuse, and sufficient to create concern regarding interpretation of results even using not-immediately-adjacent regions as controls. Spillover effects appear less concerning with smaller interventions or those adopted in smaller jurisdictions. The boundary discontinuity method of causal inference may yield misleading results if a policy’s impacts do not stop at the border of the implementing jurisdiction.

Keywords: Minimum wage; Boundary discontinuity; Policy spillovers (search for similar items in EconPapers)
JEL-codes: J38 J61 R10 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:234:y:2024:i:c:s0047272724000677

DOI: 10.1016/j.jpubeco.2024.105131

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