The Local Aggregate Effects of Minimum Wage Increases

Daniel Cooper, María José Luengo‐prado and Jonathan Parker
Authors registered in the RePEc Author Service: Maria Jose Luengo-Prado

Journal of Money, Credit and Banking, 2020, vol. 52, issue 1, 5-35

Abstract: Using variation in minimum wages across cities and controlling for differences in business‐cycle factors and long‐run local economic trends, we find that following minimum wage increases, both, prices and nominal spending rise modestly. These gains are larger for certain subcategories of goods such as food away from home and in locations where low‐wage workers account for a larger share of employment. Further, minimum wage increases are associated with reduced total debt among households with low credit scores, higher auto debt, and increased access to credit.

Date: 2020
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Citations: View citations in EconPapers (8)

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https://doi.org/10.1111/jmcb.12684

Related works:
Working Paper: The Local Aggregate Effects of Minimum Wage Increases (2019)
Working Paper: The local aggregate effects of minimum wage increases (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:52:y:2020:i:1:p:5-35

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