Arbeitspapier

Do frictions matter in the labor market? Accessions, separations and minimum wage effects

We measure labor market frictions using a strategy that bridges design-based and structural approaches: estimating an equilibrium search model using reduced-form minimum wage elasticities identified from border discontinuities and fitted with Bayesian and LIML methods. We begin by providing the first test of U.S. minimum wage effects on labor market flows and find negative effects on employment flows, but not levels. Separations and accessions fall among restaurants and teens, especially those with low tenure. Our estimated parameters of a search model with wage posting and heterogeneous workers and firms imply that frictions help explain minimum wage effects.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 5811

Klassifikation
Wirtschaft
Bayesian Analysis: General
Computational Techniques; Simulation Modeling
Labor Demand
Wages, Compensation, and Labor Costs: Public Policy
Monopsony; Segmented Labor Markets
Labor Turnover; Vacancies; Layoffs
Thema
minimum wage
labor market flows
monopsony
Bayesian estimation

Ereignis
Geistige Schöpfung
(wer)
Dube, Arindrajit
Lester, T. William
Reich, Michael
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2011

Handle
URN
urn:nbn:de:101:1-201107042606
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dube, Arindrajit
  • Lester, T. William
  • Reich, Michael
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2011

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