Minimum Wage Effects Within Census Based Statistical Areas: A Matched Pair Cross-Border Analysis

Garrett C. Taylor and James West

No 31196, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using monthly data from major U.S. metropolitan areas that span state borders, we estimate the elasticity of employment with respect to the minimum wage using a difference-in-differences design with continuous treatment in two-digit industries of 71 (Arts, Entertainment and Recreation) and 72 (Accommodation and Food Services). In specifications that control for differences in state sales, personal and corporate income tax rates, we find negative average causal response on the treated (ACRT) in six-digit industries where we expect large numbers of young, entry-level employees, but positive correlations in other industries. Our results illustrate important heterogeneities in minimum wage effects in urban versus rural areas.

JEL-codes: J21 J31 J38 (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-des
Note: LS PE
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Published as Garrett C. Taylor & James E. West, 2023. "Minimum wage effects within Census Based Statistical Areas: A matched pair cross-border analysis," Economics Letters, .

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