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Are Minimum Wages a Silent Killer? New Evidence on Drunk Driving Fatalities

Joseph J. Sabia, M. Melinda Pitts and Laura M. Argys
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Joseph J. Sabia: San Diego State University, University of New Hampshire, ESSPRI, and IZA
M. Melinda Pitts: Federal Reserve Bank of Atlanta
Laura M. Argys: University of Colorado Denver and IZA

The Review of Economics and Statistics, 2019, vol. 101, issue 1, 192-199

Abstract: Abstract In volume 94 of this REVIEW, Adams, Blackburn, and Cotti (ABC), using Fatal Accident Reporting System data from 1998 to 2006, find that a 10% increase in the minimum wage is associated with a 7% to 11% increase in alcohol-related fatal traffic accidents involving teen drivers. We find this result does not hold when the analysis period is expanded to include 1991 through 2013. In addition, auxiliary analyses provide no support for income-driven increases in alcohol consumption, the primary mechanism posited by ABC. Together, our results suggest that minimum wage increases are not a silent killer.

Date: 2019
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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