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  1. Minimum wages and retirement
    Author: Borgschulte, Mark; Cho, Heepyung
    Published: August 2018
    Publisher:  IZA, Bonn, Germany

    We study the effect of the minimum wage on the employment outcomes and Social Security claiming of older US workers from 1983 to 2016. The probability of work at or near the minimum wage increases substantially near retirement, and previous... more

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    We study the effect of the minimum wage on the employment outcomes and Social Security claiming of older US workers from 1983 to 2016. The probability of work at or near the minimum wage increases substantially near retirement, and previous researchers and policies suggest that older workers may be particularly vulnerable to any disemployment effects of the minimum wage. We find no evidence that the minimum wage causes earlier retirements. Instead, our estimates suggest that higher minimum wages increase earnings and may have small positive effects on the labor supply of workers in the key ages of 62 to 70. Consistent with increased earnings and delayed retirement, higher minimum wages decrease the number of Social Security beneficiaries and amount of benefits disbursed. The minimum wage appears to increase financial resources for workers near retirement.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
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    hdl: 10419/185188
    Series: Discussion paper series / IZA ; no. 11728
    Subjects: minimum wage; retirement; social security claiming
    Scope: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  2. The employment elasticity of the minimum wage
    is it just politics after all?
    Author: Wursten, Jesse
    Published: [2017]
    Publisher:  KU Leuven, Faculty of Economics and Business, Leuven, Belgi͏̈e

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: MSI ; MSI_17, 09
    Subjects: minimum wage; cross-sectional dependence; labour policy; political ideology; common correlated effects models; interactive fixed effects; dynamic factor models; employment elasticity
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  3. Employment adjustments following rises and reductions in minimum wages
    new insights from a survey experiment
    Author: Bossler, Mario; Oberfichtner, Michael; Schnabel, Claus
    Published: [2018]
    Publisher:  Friedrich-Alexander-Universität Erlangen-Nürnberg, Institute for Economics, [Nürnberg]

    The effects of large minimum wage increases, like those planned in the UK and in some US states, are still unknown. We conduct a survey experiment that randomly assigns increases or decreases in minimum wages to about 6,000 plants in Germany and asks... more

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    The effects of large minimum wage increases, like those planned in the UK and in some US states, are still unknown. We conduct a survey experiment that randomly assigns increases or decreases in minimum wages to about 6,000 plants in Germany and asks the personnel managers about their expectations concerning employment adjustments. We find that employment reacts asymmetrically to positive and negative changes in minimum wages. The larger the increase in the minimum wage is, the larger the expected reduction in employment. Employment adjustments are more pronounced in those industries and plants which are more strongly affected by the current minimum wage and in those plants that have neither collective agreements nor a works council. In contrast, employment is not found to increase if the minimum wage is reduced by about 10 percent. This mainly reflects that plants with works councils and collective agreements would not cut wages. Die Auswirkungen von starken Anhebungen der Mindestlöhne, wie sie in Großbritannien und einigen US-Staaten geplant sind, sind noch uner-forscht. Wir führen ein Befragungsexperiment durch, das rund 6000 Betrieben in Deutschland zufällig Erhöhungen oder Senkungen von Mindestlöhnen zuweist und die Personalverantwortlichen nach den zu erwartenden Beschäftigungsanpassun-gen fragt. Es zeigt sich, dass die Beschäftigung asymmetrisch auf positive und negative Mindestlohnänderungen reagiert. Je stärker der Mindestlohn steigt, desto größer ist der erwartete Beschäftigungsrückgang. Beschäftigungsanpassungen fallen in denjenigen Branchen und Betrieben größer aus, die stärker vom derzeitigen Mindestlohn betroffen sind, sowie in denjenigen Betrieben, die weder Tarifverträge noch Betriebsräte haben. Im Gegensatz dazu nimmt die Beschäftigung nicht zu, falls der Mindestlohn um ca. 10 Prozent gesenkt wird. Dies hängt vor allem damit zusammen, dass Betriebe mit Betriebsräten und Tarifverträgen die Löhne nicht kürzen würden.

     
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    hdl: 10419/183138
    Series: FAU discussion papers in economics ; no. 2018, 11
    Subjects: minimum wage; wage cuts; establishment survey; Germany
    Scope: 1 Online-Ressource (circa 36 Seiten), Illustrationen
  4. Long-term responses to large minimum wage shocks
    sub-minimum and super-minimum workers in Slovenia
    Author: Laporšek, Suzana; Orazem, Peter F.; Vodopivec, Matija; Vodopivec, Milan
    Published: January 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    This study examines long-term effects of a minimum wage increase using an innovative identification strategy based on categorising workers according to their predicted marginal revenue products. It finds that the increase had a large and persistent... more

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    This study examines long-term effects of a minimum wage increase using an innovative identification strategy based on categorising workers according to their predicted marginal revenue products. It finds that the increase had a large and persistent disemployment effects on low-paid workers and that it triggered substitution toward more productive workers. As a consequence, the sub-minimum workers as a group lost average earnings, hours and employment compared to other workers. The adverse employment effect occurred both through a higher probability of transition from employment to non-employment and through a decreased probability of transition from non-employment to employment.

     
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    Language: English
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    hdl: 10419/196621
    Series: Discussion paper series / IZA ; no. 12123
    Subjects: minimum wage; employment; unemployment; hours; earnings; Slovenia
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  5. The short-run effects of the minimum wage on employment and labor market participation
    evidence from an individual-level panel
    Author: Boffy-Ramirez, Ernest
    Published: February 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Neumark, Salas, and Wascher (2014) succinctly summarize the empirical challenges researchers of the minimum wage face: "the identification of minimum wage effects requires both a sufficiently sharp focus on potentially affected workers and the... more

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    Neumark, Salas, and Wascher (2014) succinctly summarize the empirical challenges researchers of the minimum wage face: "the identification of minimum wage effects requires both a sufficiently sharp focus on potentially affected workers and the construction of a valid counterfactual control group for what would have happened absent increases in the minimum wage." The difficulty of addressing these two challenges is evident in the variety of empirical approaches seen in the literature. In this paper, I address the latter of the issues in a manner nearly absent in the minimum wage literature by taking advantage of individual-level longitudinal data to observe the impacts of minimum wage changes on unemployment and labor force participation. Using within-individual variation and short 4-month panels, I control for heterogeneity at the individual level that determines unemployment and labor force participation. Specifically, the empirical strategy controls any fixed individual-specific idiosyncrasies and differential exposure to time-invariant economic shocks. This differs significantly from previous literature that exploits within-state variation. The short-run impacts of the minimum wage are assessed using monthly data, instead of yearly or quarterly data, which allows for the analysis of contemporaneous minimum wage effects. There is no evidence of an increase in unemployment immediately following a minimum wage increase. In addition, it does not appear that employers are substituting full-time workers with part-time workers. That said, there is robust evidence that immediately following a minimum wage increase, labor force participation decreases.

     
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    hdl: 10419/196635
    Series: Discussion paper series / IZA ; no. 12137
    Subjects: minimum wage; unemployment; labor force participation; individual fixed effects
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  6. Increasing social insurance coverage in Viet Nam's SMEs
    Author: Castel, Paulette; Pick, Alexander
    Published: [2018]
    Publisher:  OECD Publishing, [Paris, France]

    Viet Nam has made significant progress in expanding social insurance coverage in recent years. However, coverage amongst small and medium-sized enterprises (SMEs) remains very low and very few workers in this sector are expected to receive a pension... more

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    Viet Nam has made significant progress in expanding social insurance coverage in recent years. However, coverage amongst small and medium-sized enterprises (SMEs) remains very low and very few workers in this sector are expected to receive a pension in retirement. Drawing on two datasets for SMEs in Viet Nam, this paper seeks to explain this phenomenon by examining the characteristics of enterprises that are enrolled and those that opt out, and it identifies possible barriers to enrolment, such as high contribution rates. It also examines how enforcement mechanisms and formalisation policies might deter enterprises from enrolling. Drawing on lessons from international experience, the paper recommends a series of policy responses that seek both to address these barriers and to protect the livelihoods of those workers who are not yet covered.

     
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    Source: Staatsbibliothek zu Berlin
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    Series: OECD development policy papers ; no. 13 (October 2018)
    Subjects: social protection; social insurance; SMEs; formalisation; minimum wage; Viet Nam; Viet Nam; Development
    Scope: 1 Online-Ressource (circa 58 Seiten), Illustrationen
  7. Understanding "wage theft"
    evasion and avoidance responses to minimum wage increases
    Author: Clemens, Jeffrey; Strain, Michael R.
    Published: February 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    A holistic assessment of the labor market effects of minimum wage regulation requires understanding employer compliance. The economics literature has paid little attention to this issue. We investigate how minimum wage increases and the strength of... more

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    A holistic assessment of the labor market effects of minimum wage regulation requires understanding employer compliance. The economics literature has paid little attention to this issue. We investigate how minimum wage increases and the strength of enforcement regimes affect the prevalence of subminimum wage payments. We find strong evidence that higher minimum wages lead to a greater prevalence of subminimum wage payments. We consistently estimate that increases in measured underpayment following minimum wage increases average between 10 and 25 percent of realized wage gains. We interpret this as evidence that minimum wage evasion and avoidance are an important reality in the low-wage labor market. Finally, we find that enforcement regimes play an important role in shaping both baseline compliance rates and the response of compliance to increases in minimum wages.

     
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    Source: Union catalogues
    Language: English
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    Other identifier:
    hdl: 10419/196665
    Series: Discussion paper series / IZA ; no. 12167
    Subjects: minimum wage; subminimum wage; compliance; noncompliance; enforcement
    Scope: 1 Online-Ressource (circa 58 Seiten), Illustrationen
  8. Long-term employment effects of the minimum wage in germany
    new data and estimators
    Author: Caliendo, Marco; Pestel, Nico; Olthaus, Rebecca
    Published: [2024]
    Publisher:  University of Potsdam, Potsdam

    We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014,... more

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014, just before its introduction, as well as in 2018, before it was raised substantially in several steps. The introduction mainly affected the labour market in East Germany, while the minimum wage increases increasingly affected low-wage regions in West Germany, with about one third of regions changing their (binary) treatment status between 2014 and 2018. We use different specifications and extensions of the canonical difference-in-differences approach, as well as a set of new estimators that allow unbiased effect estimation with a staggered treatment adoption and heterogeneous treatment effects. Our results show a small negative effect on total dependent employment of 0.5%, driven by a significant reduction in marginal employment of 2.4%. The extended specifications suggest additional effects of the minimum wage increases, as well as stronger negative effects for those regions that were strongly affected by the minimum wage in both periods.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
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    Series: CEPA discussion papers ; no. 80 (November 2024)
    Subjects: minimum wage; employment; regional bite
    Scope: 1 Online-Ressource (46 Seiten, 2788 KB), Illustrationen
  9. Long-term employment effects of the minimum wage in Germany
    new data and estimators
    Author: Caliendo, Marco; Pestel, Nico; Olthaus, Rebecca
    Published: November 2024
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014,... more

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    We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014, just before its introduction, as well as in 2018, before it was raised substantially in several steps. The introduction mainly affected the labour market in East Germany, while the minimum wage increases increasingly affected low-wage regions in West Germany, with about one third of regions changing their (binary) treatment status between 2014 and 2018. We use different specifications and extensions of the canonical difference-in-differences approach, as well as a set of new estimators that allow unbiased effect estimation with a staggered treatment adoption and heterogeneous treatment effects. Our results show a small negative effect on total dependent employment of 0.5%, driven by a significant reduction in marginal employment of 2.4%. The extended specifications suggest additional effects of the minimum wage increases, as well as stronger negative effects for those regions that were strongly affected by the minimum wage in both periods.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Discussion paper series / IZA ; no. 17436
    Subjects: minimum wage; employment; regional bite
    Scope: 1 Online-Ressource (circa 49 Seiten), Illustrationen
  10. Understanding wage floor setting in industry-level agreements
    evidence from France
    Author: Fougère, Denis; Gautier, Erwan; Roux, Sébastien
    Published: [2017]
    Publisher:  INSEE, Institut national de la statistique et des études économiques, Malakoff

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    Series: Document de travail / Direction des études et synthèses économiques ; G 2017, 01
    Subjects: collective bargaining; wages; minimum wage
    Scope: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  11. Payroll, revenue, and labor demand effects of the minimum wage
    Author: Jardim, Ekaterina; Van Inwegen, Emma
    Published: February 2019
    Publisher:  W.E. Upjohn Institute for Employment Research, Kalamazoo, MI

    We study the impact of the minimum wage hike in Seattle from $9.47 to $13 on wagebill, labor demand, and firm revenue using administrative data from the state of Washington. We show that the minimum wage affected businesses both at the intensive and... more

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    We study the impact of the minimum wage hike in Seattle from $9.47 to $13 on wagebill, labor demand, and firm revenue using administrative data from the state of Washington. We show that the minimum wage affected businesses both at the intensive and extensive margins. At the intensive margin, businesses increased their labor costs and adjusted to the minimum wage by mildly reducing demand for low-wage jobs, but they largely did not pass the increase in labor costs to prices. At the extensive margin, the minimum wage led to higher rates of business exit and shifted the composition of entering businesses towards less labor-intensive businesses. Finally, we find that the extensive margin and the intensive margin effects were of the same order of magnitude, and were equally important for understanding the impacts of the minimum wage.

     
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    hdl: 10419/202895
    Series: Upjohn Institute working paper ; 19, 298
    Subjects: minimum wage; extensive and intensive margin; channels of adjustment
    Scope: 1 Online-Ressource (circa 60 Seiten), Illustrationen
  12. The German statutory minimum wage and its effects on regional employment and unemployment
    Author: Bonin, Holger; Isphording, Ingo Eduard; Lichter, Andreas; Pestel, Nico; Rinne, Ulf
    Published: March 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    This paper studies the effects of the introduction of Germany's statutory minimum wage in 2015 on employment and unemployment on the level of regional labor markets. Using variation in the regional exposure to the new wage floor, we employ a... more

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    This paper studies the effects of the introduction of Germany's statutory minimum wage in 2015 on employment and unemployment on the level of regional labor markets. Using variation in the regional exposure to the new wage floor, we employ a difference-in-differences approach that compares the evolution of employment and unemployment between regions with varying minimum wage bites. Overall, we find no statistically significant effect of the introduction of the German minimum wage on regular employment subject to social insurance, but a statistically significant negative effect on marginal employment. The reduction is not accompanied by a proportional increase in unemployment.

     
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    Contributor: Krause-Pilatus, Annabelle (VerfasserIn einer Einleitung)
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/206960
    Series: IZA policy paper ; no. 145
    Subjects: minimum wage; employment; unemployment; labor market regions; Germany
    Scope: 1 Online-Ressource (circa 32 Seiten), Illustrationen
  13. Does minimum wage increase labor productivity?
    evidence from piece rate workers
    Author: Ku, Hyejin
    Published: June 2020
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We examine worker effort as a potential margin of adjustment to a minimum wage hike using unique data on piece rate workers who perform a homogenous task and whose individual output is rigorously recorded. By employing a difference-in-differences... more

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    We examine worker effort as a potential margin of adjustment to a minimum wage hike using unique data on piece rate workers who perform a homogenous task and whose individual output is rigorously recorded. By employing a difference-in-differences strategy that exploits the increase in Florida's minimum wage from $6.79 to $7.21 on January 1, 2009, and worker location on the pre-2009 productivity distribution, we provide evidence consistent with incumbent workers' positive effort responses.

     
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    hdl: 10419/223811
    Series: Discussion paper series / IZA ; no. 13369
    Subjects: minimum wage; incentive; effort; labor productivity
    Scope: 1 Online-Ressource (circa 56 Seiten), Illustrationen
  14. The minimum wage versus the earned income tax credit for reducing poverty
    enhancing the earned income tax credit would do more to reduce poverty, at less cost, than increasing the minimum wage
    Author: Burkhauser, Richard V.; Corinth, Kevin
    Published: September 2021
    Publisher:  Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), Bonn

    Minimum wage increases are not an effective mechanism for reducing poverty. And there is little causal evidence that they do so. Most workers who gain from minimum wage increases do not live in poor (or near-poor) families, while some who do live in... more

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    Minimum wage increases are not an effective mechanism for reducing poverty. And there is little causal evidence that they do so. Most workers who gain from minimum wage increases do not live in poor (or near-poor) families, while some who do live in poor families lose their job as a result of such increases. The earned income tax credit is an effective way to reduce poverty. It raises only the after-tax wage rates of workers in low- and moderate-income families, the tax credit increases with the number of dependent children, and evidence shows that it increases labor force participation and employment in these families.

     
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    Other identifier:
    hdl: 10419/260683
    Series: IZA world of labor ; 2021, 153v2
    Subjects: minimum wage; earned income tax credit; working poor
    Scope: 1 Online-Ressource (circa 10 Seiten), Illustrationen
  15. Misallocation inefficiency in partially directed search
    Author: Rabinovich, Stanislav; Wolthoff, Ronald
    Published: July 01, 2022
    Publisher:  University of Toronto, Department of Economics, Toronto

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    Series: Working paper / University of Toronto, Department of Economics ; 728
    Subjects: Directed search; random search; labor markets; minimum wage; misallocation; market power
    Scope: 1 Online-Ressource (circa 60 Seiten)
  16. Minimum wages in concentrated labor markets
    Author: Popp, Martin
    Published: 22 December 2021
    Publisher:  Institute for Employment Research of the Federal Employment Agency, Nürnberg

    Economists increasingly refer to monopsony power to reconcile the absence of negative employment effects of minimum wages with theory. However, systematic evidence for the monopsony argument is scarce. In this paper, I perform a comprehensive test of... more

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    Economists increasingly refer to monopsony power to reconcile the absence of negative employment effects of minimum wages with theory. However, systematic evidence for the monopsony argument is scarce. In this paper, I perform a comprehensive test of monopsony theory by using labor market concentration as a proxy for monopsony power. Labor market concentration turns out substantial in Germany. Absent wage floors, a 10 percent increase in labor market concentration makes firms reduce wages by 0.5 percent and employment by 1.6 percent, reflecting monopsonistic exploitation. In line with perfect competition, sectoral minimum wages lead to negative employment effects in slightly concentrated labor markets. This effect weakens with increasing concentration and, ultimately, becomes positive in highly concentrated or monopsonistic markets. Overall, the results lend empirical support to the monopsony argument, implying that conventional minimum wage effects on employment conceal heterogeneity across market forms. Monopson-Macht wird zunehmend angeführt, um das Ausbleiben negativer Beschäftigungseffekte von Mindestlöhnen mit der ökonomischen Theorie in Einklang zu bringen. In der Literatur finden sich jedoch kaum systematische Belege für das Monopson-Argument. In diesem Beitrag führe ich einen umfassenden Test der Monopson-Theorie durch, indem ich Indizes der Arbeitsmarkkonzentration heranziehe, um die Monopson-Macht von Betrieben zu approximieren. Die Arbeitsmarktkonzentration fällt in Deutschland erheblich aus. In Abwesenheit von Mindestlöhnen führt ein zehnprozentiger Anstieg der Arbeitsmarktkonzentration dazu, dass Betriebe sowohl ihre durchschnittlich ausbezahlten Löhne um 0,5 Prozent als auch ihre Beschäftigung um 1,6 Prozent senken, was eine monopsonistische Ausbeutung widerspiegelt. In Übereinstimmung mit der Theorie der vollständigen Konkurrenz gehen branchenspezifische Mindestlöhne mit negativen Beschäftigungseffekten in leicht konzentrierten Arbeitsmärkten einher. Dieser negative Effekt schwächt sich mit zunehmender Konzentration ab und wird schließlich in stark konzentrierten bzw. monopsonistischen Märkten positiv. Damit stützen die empirischen Ergebnisse das Monopson-Argument, was nahelegt, dass bisher in der Literatur ausgewiesene Beschäftigungseffekte von Mindestlöhnen eine Heterogenität nach verschiedenen Marktformen nicht abbilden.

     
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    Other identifier:
    hdl: 10419/249707
    Series: IAB-discussion paper ; 2021, 21
    Subjects: labor demand; labor market concentration; minimum wage; monopsony
    Scope: 1 Online-Ressource (circa 108 Seiten), Illustrationen
  17. Determinants of school enrolment
    relationship between minimum wage and human capital investment
    Author: Pritadrajati, Dyah
    Published: December 2020
    Publisher:  Economic Research Institute for ASEAN and East Asia, [Jakarta]

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    Series: ERIA discussion paper series ; ERIA-DP-2020-29 = no. 356
    Subjects: minimum wage; human capital investment; senior-secondary school enrolment
    Scope: 1 Online-Ressource (circa 43 Seiten), Illustrationen
  18. On the Inefficiency of Non-Competes in Low-Wage Labor Markets
    Author: Potter, Tristan; Hobijn, Bart; Kurmann, André
    Published: 2022
    Publisher:  Federal Reserve Bank of San Francisco, [San Francisco, CA]

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    Series: Working papers series / Federal Reserve Bank of San Francisco ; 2022, 01 (January 2022)
    Subjects: Non-compete agreements; low-wage labor markets; minimum wage
    Scope: 1 Online-Ressource (circa 52 Seiten), Illustrationen
  19. What's across the border?
    re-evaluating the cross-border evidence on minimum wage effects
    Author: Jha, Priyaranjan; Neumark, David; Rodríguez López, Antonio
    Published: May 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    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... more

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    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.

     
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    hdl: 10419/263498
    Series: Discussion paper series / IZA ; no. 15282
    Subjects: minimum wage; employment; commuting zones
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  20. What's across the border?
    re-evaluating the cross-border evidence on minimum wage effects
    Author: Jha, Priyaranjan; Neumark, David; Rodríguez López, Antonio
    Published: May 2022
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    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... more

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    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.

     
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    hdl: 10419/260876
    Series: CESifo working paper ; no. 9746 (2022)
    Subjects: minimum wage; employment; commuting zones
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  21. Minimum wage and collective bargaining reforms
    a narrative database for advanced economies
    Author: Afonso, António; Jalles, João Tovar; Venter, Zoe
    Published: April 2022
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    This paper presents and describes a new database of major minimum wage and collective bargaining reforms covering 26 advanced economies over the period 1970-2020. The main advantage of this dataset is the precise identification of the nature and date... more

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    This paper presents and describes a new database of major minimum wage and collective bargaining reforms covering 26 advanced economies over the period 1970-2020. The main advantage of this dataset is the precise identification of the nature and date of major reforms, which is valuable in many empirical applications. Based on the dataset, major changes in minimum wages have been more frequent than in collective bargaining in the last decades, and the majority of these were implemented during the 1980s and 1990s. In our empirical application, we find that minimum wage reforms have a medium-run positive impact on labor productivity and they lead to a fall in the unemployment rate. Collective bargaining reforms do not seem to affect either productivity or capital formation but they have a clear medium-term effect on the labor market. Moreover, collective bargaining reforms are more sensitivity to the prevailing business cycle conditions at the time of the reform (vis-à-vis minimum wage reforms).

     
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    hdl: 10419/260822
    Series: CESifo working paper ; no. 9692 (2022)
    Subjects: labour market policies; minimum wage; collective bargaining; labour productivity; growth; local projection
    Scope: 1 Online-Ressource (circa 23 Seiten), Illustrationen
  22. Minimum wage increases and vacancies
    Author: Kudlyak, Marianna; Tasci, Murat; Tüzemen, Didem
    Published: April 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Using a unique data set and a novel identification strategy, we estimate the effect of minimum wage increases on job vacancy postings. Utilizing occupation-specific county- level vacancy data from the Conference Board's Help Wanted Online for... more

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    Using a unique data set and a novel identification strategy, we estimate the effect of minimum wage increases on job vacancy postings. Utilizing occupation-specific county- level vacancy data from the Conference Board's Help Wanted Online for 2005-2018, we find that state-level minimum wage increases lead to substantial declines in existing and new vacancy postings in occupations with a larger share of workers who earn close to the prevailing minimum wage. We estimate that a 10 percent increase in the state-level effective minimum wage reduces vacancies by 2.4 percent in the same quarter, and the cumulative effect is as large as 4.5 percent a year later. The negative effect on vacancies is more pronounced for occupations where workers typically have lower educational attainment (high school or less) and in counties with higher poverty rates. We argue that our focus on vacancies versus on employment has a distinct advantage of highlighting a mechanism through which minimum wage hikes affect labor demand. Our finding of a negative effect on vacancies is not inconsistent with the wide range of findings in the literature about the effect of minimum wage changes on employment, which is driven by changes in both hiring and separation margins.

     
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    hdl: 10419/263470
    Series: Discussion paper series / IZA ; no. 15254
    Subjects: minimum wage; vacancies; hiring; search and matching
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  23. Informal incentives and labor markets
    Author: Fahn, Matthias; Murooka, Takeshi
    Published: May 2022
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    This paper theoretically investigates how labor-market tightness affects market outcomes if firms use informal and self-enforcing agreements to motivate workers. We characterize profit-maximizing equilibria and derive the following results. First, an... more

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    This paper theoretically investigates how labor-market tightness affects market outcomes if firms use informal and self-enforcing agreements to motivate workers. We characterize profit-maximizing equilibria and derive the following results. First, an increase in the supply of homogenous workers can increase wages. Second, even though all workers are identical in terms of skills or productivity, a discrimination equilibrium exists in which a group of majority workers are paid higher wages than a group of minority workers. Third, minimum wages can reduce such discrimination and increase employment. We discuss how these results are consistent with empirical evidence on immigration and a gender pay gap, and provide new testable implications.

     
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    hdl: 10419/260870
    Series: CESifo working paper ; no. 9740 (2022)
    Subjects: informal incentives; labor supply; immigration; wage discrimination; minimum wage
    Scope: 1 Online-Ressource (circa 64 Seiten)
  24. Does measurement error explain the increase in subminimum wage payment following minimum wage increases?
    Author: Clemens, Jeffrey; Strain, Michael R.
    Published: March 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    In analyses of minimum wages, positive "ripple effects" and subminimum wages are difficult to distinguish from measurement error. Indeed, prior work posits that a simple, symmetric measurement process may underlie both phenomena in Current Population... more

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    In analyses of minimum wages, positive "ripple effects" and subminimum wages are difficult to distinguish from measurement error. Indeed, prior work posits that a simple, symmetric measurement process may underlie both phenomena in Current Population Survey data for the full working age population. We show that the population-wide symmetry between spillovers and subminimum wage payment is illusory in that spillovers accrue to older individuals while underpayment accrues to the young. Symmetric measurement error cannot explain this heterogeneity, which increases the likelihood that both spillovers and subminimum-wage payment are real effects of minimum wage increases rather than artifacts of measurement error.

     
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    hdl: 10419/263374
    Series: Discussion paper series / IZA ; no. 15158
    Subjects: minimum wage; subminimum wage; noncompliance
    Scope: 1 Online-Ressource (circa 10 Seiten)
  25. Minimum wage increases and vacancies
    Author: Kudlyak, Marianna; Tasci, Murat; Tuzemen, Didem
    Published: 23 April 2022
    Publisher:  Centre for Economic Policy Research, London

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    Series: Array ; DP17245
    Subjects: minimum wage; Vacancies; Hiring; Search and Matching
    Scope: 1 Online-Ressource (circa 40 Seiten), Illustrationen