The Local Aggregate Effects of Minimum Wage Increases

Daniel Cooper, Maria Luengo-Prado and Jonathan Parker

No 25761, NBER Working Papers from National Bureau of Economic Research, Inc

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 sub-categories of goods such as food away from home and in locations where low-wage workers are 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.

JEL-codes: D14 E20 E31 J20 J38 (search for similar items in EconPapers)
Date: 2019-04
New Economics Papers: this item is included in nep-lma, nep-mac and nep-ure
Note: EFG LS ME PE
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Citations: View citations in EconPapers (2)

Published as DANIEL COOPER & MARÍA JOSÉ LUENGO‐PRADO & JONATHAN A. PARKER, 2020. "The Local Aggregate Effects of Minimum Wage Increases," Journal of Money, Credit and Banking, vol 52(1), pages 5-35.

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Working Paper: The local aggregate effects of minimum wage increases (2017)
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