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On the Robustness of Minimum Wage Effects: Geographically-Disparate Trends and Job Growth Equations

Addison, J.T.; Blackburn, M.L.; Cotti, C.D.

On the Robustness of Minimum Wage Effects: Geographically-Disparate Trends and Job Growth Equations Thumbnail


Authors

M.L. Blackburn

C.D. Cotti



Abstract

Recent attempts to incorporate spatial heterogeneity in minimum-wage employment models have been targeted for using overly simplistic trend controls and for neglecting the potential impact of wage minima on employment growth. This paper investigates whether such considerations call into question findings of statistically insignificant employment effects reported in the literature for an archetypal low-wage sector in the United States: restaurants and bars. Understanding this relationship goes to the heart of the policy debate surrounding minimum wages and, hence, is critical to investigate carefully. Our results conclude that a focus on employment levels is appropriate for this sector and, further, that the deployment of nonlinear trend controls does not dislodge prior research which finds weak support for the existence of adverse minimum-wage employment effects on employment.

Journal Article Type Article
Acceptance Date Nov 23, 2015
Online Publication Date Dec 29, 2015
Publication Date Dec 29, 2015
Deposit Date Nov 17, 2015
Publicly Available Date Nov 19, 2015
Journal IZA Journal of Labor Economics
Publisher Sciendo
Peer Reviewed Peer Reviewed
Volume 4
Article Number 24
DOI https://doi.org/10.1186/s40172-015-0039-z
Keywords Minimum wages, Employment, Employment change, Spatial controls.
Public URL https://durham-repository.worktribe.com/output/1426741

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Copyright Statement
© 2015 Addison et al. Open AccessThis article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.





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