Effects of a minimum wage increase on the employment of disabled persons

Andrew Mikael Larsen

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: The purpose of this paper is to examine the effects of a minimum wage change on the employment of disabled persons. Minimum wage changes may take place at either the federal or state level. Using data from the Survey of Income and Program Participation (SIPP) this study concludes that there is an insignificant increase in the employment of disabled persons following an increase in the minimum wage. More precisely, the results propose that a 10% increase in the minimum wage leads to a 0.6% increase in the employment of disabled persons. The study conducts simulations of various hypothetical policy changes affecting minimum wage and predicts how those changes affect the employment status of the disabled.

Date: 2004-01-01
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