The Effect of Minimum Wage Policies on the Wage and Occupational Structure of Establishments

Eliza Forsythe

Journal of Labor Economics, 2023, vol. 41, issue S1, S291 - S324

Abstract: Using establishment-level panel data from the Occupational Employment and Wage Statistics program, I estimate the effect of minimum wage increases implemented by 10 states in 2014 and 2015. I show that minimum wage increases lead to wage spillovers within establishments. I find little evidence that minimum wage increases induce establishments to reorganize their occupational mix. Finally, I find that minimum wage increases propagate up the management hierarchy, leading to increased wages for supervisors. Nonetheless, I find that overall wage inequality decreases within establishments after minimum wage increases.

Date: 2023
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Chapter: The Effect of Minimum Wage Policies on the Wage and Occupational Structure of Establishments (2021)
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