Arbeitspapier
What's across the Border? Re-Evaluating the Cross-Border Evidence on Minimum Wage Effects
Dube, Lester, and Reich (2010) argue that state-level minimum wage variation can be correlated with economic shocks, generating spurious evidence that higher minimum wages reduce employment. Using minimum wage variation within contiguous county pairs that share a state border, they find no relationship between minimum wages and employment in the U.S. restaurant industry. We show that this finding hinges critically on using cross-border counties to define local economic areas with which to control for economic shocks that are potentially correlated with minimum wage changes. We use, instead, multi-state commuting zones, which provide superior definitions of local economic areas. Using the same within-local area research design—but within cross-border commuting zones—we find a robust negative relationship between minimum wages and employment.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 15282
- Klassifikation
-
Wirtschaft
Labor Demand
Wages, Compensation, and Labor Costs: Public Policy
- Thema
-
minimum wage
employment
commuting zones
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Jha, Priyaranjan
Neumark, David
Rodriguez-Lopez, Antonio
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute of Labor Economics (IZA)
- (wo)
-
Bonn
- (wann)
-
2022
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Jha, Priyaranjan
- Neumark, David
- Rodriguez-Lopez, Antonio
- Institute of Labor Economics (IZA)
Entstanden
- 2022
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