Arbeitspapier

The effect of minimum wages on wages and employment: county-level estimates for the United States

We use county-level data on employment and earnings in the restaurant-and-bar sector to evaluate the impact of minimum wage changes on low-wage labor markets. Our empirical approach is similar to the literature that has used state-level panel data to estimate minimum-wage impacts, with the difference that we focus on a particular sector rather than demographic group. Our estimated models are consistent with a simple competitive model of the restaurant-and-bar labor market in which supply-and-demand factors affect both the equilibrium outcome and the probability that a minimum wage will be binding in any given time period. Our evidence does not suggest that minimum wages reduce employment in the overall restaurant-and-bar sector, after controls for trends in sector employment at the county level are incorporated in the model. Employment in this sector appears to exhibit a downward long-term trend in states that have increased their minimum wages relative to states that have not, thereby predisposing fixed-effects estimates towards finding negative employment effects.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 3300

Klassifikation
Wirtschaft
Labor Demand
Thema
Minimum wages
wages and employment
county-level data
spatial trends
Mindestlohn
Gastgewerbe
Wirkungsanalyse
Niedriglohn
Beschäftigungseffekt
Provinz
Regionale Lohnstruktur
USA

Ereignis
Geistige Schöpfung
(wer)
Addison, John T.
Blackburn, McKinley L.
Cotti, Chad D.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:43 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

  • Addison, John T.
  • Blackburn, McKinley L.
  • Cotti, Chad D.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2008

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