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

Hyejin Ku

No 13369, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We 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, we provide evidence consistent with incumbent workers' positive effort responses.

Keywords: labor productivity; labor productivity; effort; effort; incentive; minimum wage (search for similar items in EconPapers)
JEL-codes: J20 J38 M50 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2020-06
New Economics Papers: this item is included in nep-eff and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of Labor Economics, 2022, 40 (2), 325-359

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