Does Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers

Hyejin Ku

Journal of Labor Economics, 2022, vol. 40, issue 2, 325 - 359

Abstract: I examine worker effort as a potential margin of adjustment to a minimum wage hike using unique data on piece rate workers who perform a homogenous task and whose individual output is rigorously recorded. By employing a difference-in-differences strategy that exploits the increase in Florida’s minimum wage from $6.79 to $7.21 on January 1, 2009, and worker location on the pre-2009 productivity distribution, I provide evidence consistent with incumbent workers’ positive effort responses.

Date: 2022
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Working Paper: Does Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers (2020)
Working Paper: Does Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers (2020)
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