EconPapers    
Economics at your fingertips  
 

Minimum Wage Increases and Vacancies

Marianna Kudlyak, Murat Tasci and Didem Tuzemen ()

No 201930, Working Papers from Federal Reserve Bank of Cleveland

Abstract: We estimate the impact of minimum-wage increases on the quantity of labor demanded as measured by firms’ vacancy postings. We use propriety, county-level vacancy data from the Conference Board’s Help Wanted Online database. Our identification relies on the disproportionate effects of minimum-wage hikes on different occupations, as the wage distribution around the binding minimum wage differs by occupation. We find that minimum-wage increases during the 2005-2018 period have led to substantial declines in vacancy postings in at-risk occupations, occupations with a larger share of employment around the prevailing minimum wage. Our estimate implies that a 10 percent increase in the binding minimum- wage level reduces vacancies by 2.4 percent in this group. The negative effect is concentrated not exclusively in the routine jobs, but more in the manual occupations.

Keywords: Search and Matching; Hiring; Minimum Wage; Vacancies (search for similar items in EconPapers)
JEL-codes: E24 E32 J30 J41 J63 J64 (search for similar items in EconPapers)
Pages: 33
Date: 2019-12-23
New Economics Papers: this item is included in nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-201930

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwq:86677

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-201930

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-07-05
Handle: RePEc:fip:fedcwq:86677