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Employment Effects of the 2009 Minimum Wage Increase: Evidence from State Comparisons of At-Risk Workers (Revised Version)

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Author Info

  • Saul D. Hoffman

    ()
    (Department of Economics,University of Delaware)

  • Chenglong Ke

    ()
    (Department of Economics,University of Delaware)

Abstract

In July, 2009, the U.S. Federal minimum wage was increased from $6.55 to $7.25. Individuals in some states were unaffected by this increase, since the state minimum wage already exceeded $7.25. We use this variation to make comparisons of the employment of “at-risk” workers with their peers across states and with workers within states who were arguably unaffected by the increase. Our data come from the 2009 CPS, four and five months before and after the increase. We find little evidence of negative employment effects for teens or less- educated adults, but some stronger evidence of a negative effect for young adults with a high school degree or less. Control for demographic characteristics reduces the size and significance of the estimated effects.

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File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2011/UDWP2011-16.pdf
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Bibliographic Info

Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 11-16.

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Length: 36 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:dlw:wpaper:11-16.

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Postal: Purnell Hall, Newark, Delaware 19716
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Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
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Keywords: Minimum Wage;

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References

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  1. Burkhauser, Richard V & Couch, Kenneth A & Wittenburg, David C, 2000. "A Reassessment of the New Economics of the Minimum Wage Literature with Monthly Data from the Current Population Survey," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 653-80, October.
  2. Dube, Andrajit & Lester, T. William & Reich, Michael, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," Institute for Research on Labor and Employment, Working Paper Series qt86w5m90m, Institute of Industrial Relations, UC Berkeley.
  3. Saul D. Hoffman & Diane Trace, 2007. "NJ and PA Once Again: What Happened to Employment When the PA-NJ Minimum Wage Differential Disappeared?," Working Papers 07-08, University of Delaware, Department of Economics.
  4. Arindrajit Dube & Suresh Naidu & Michael Reich, 2007. "The Economic Effects of a Citywide Minimum Wage," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(4), pages 522-543, July.
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Cited by:
  1. John T. Addison & McKinley L. Blackburn & Chad D. Cotti, 2012. "The Effect of Recent Increases in the U.S. Minimum Wage: Results from Three Data Sources," Working Paper Series 58_12, The Rimini Centre for Economic Analysis.
  2. John T. Addison & McKinley L. Blackburn & Chad D. Cotti, 2013. "Minimum Wage Increases in a Recessionary Environment," GEMF Working Papers 2013-08, GEMF - Faculdade de Economia, Universidade de Coimbra.

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