Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading

Jeffrey Clemens, Lisa B. Kahn and Jonathan Meer

Journal of Labor Economics, 2021, vol. 39, issue S1, S107 - S149

Abstract: We explore whether minimum wage increases result in substitution from lower-skilled to slightly higher-skilled labor. Using 2011–16 American Community Survey (ACS) data, we show that workers employed in low-wage occupations are older and more likely to have a high school diploma following recent statutory minimum wage increases. To better understand the role of firms, we examine the Burning Glass vacancy data. We find increases in a high school diploma requirement following minimum wage hikes, consistent with our ACS evidence on stocks of employed workers. We see substantial adjustments to requirements both within and across firms.

Date: 2021
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Working Paper: Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading (2020)
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