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The Employment Effect in Retail Trade of California's 1988 Minimum Wage Increase

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  • Kim, Taeil
  • Taylor, Lowell J
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    Abstract

    This paper considers the labor market effect of California's 1988 minimum wage increase in the retail trade industry. Two sources of variation--county variation and cross-industry variation--are exploited in estimating the effect of the minimum wage change. Both empirical approaches suggest that the textbook economic analysis of minimum wages pertains; employment growth in California's low-wage retail trade sector appears to have been tempered by the minimum wage increase.

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    Bibliographic Info

    Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

    Volume (Year): 13 (1995)
    Issue (Month): 2 (April)
    Pages: 175-82

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    Handle: RePEc:bes:jnlbes:v:13:y:1995:i:2:p:175-82

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    Cited by:
    1. Madeline Zavodny, 1998. "Why minimum wage hikes may not reduce employment," Economic Review, Federal Reserve Bank of Atlanta, issue Q 2, pages 18-28.
    2. Kane, John, 1997. "Myth and measurement: The new economics of the minimum wage : David Card and Alan B. Krueger, New Jersey: Princeton University Press, 1995, x + 422," International Review of Economics & Finance, Elsevier, vol. 6(2), pages 219-222.
    3. Addison, John T. & Blackburn, McKinley L. & Cotti, Chad, 2008. "New Estimates of the Effects of Minimum Wages in the U.S. Retail Trade Sector," IZA Discussion Papers 3597, Institute for the Study of Labor (IZA).
    4. Chung-cheng Lin, 2001. "A Comment on "Labor Markets, Unemployment, and Minimum Wages: A New View."," Eastern Economic Journal, Eastern Economic Association, vol. 27(1), pages 71-82, Winter.
    5. Addison, John T. & Blackburn, McKinley L. & Cotti, Chad D., 2009. "Do minimum wages raise employment? Evidence from the U.S. retail-trade sector," Labour Economics, Elsevier, vol. 16(4), pages 397-408, August.

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