Are the Effects of Minimum Wage Increases Always Small? A Re-Analysis of Sabia, Burkhauser, and Hansen
AbstractIn a recent article, Sabia, Burkhauser, and Hansen report very large negative employment effects of the 2004-2006 increase in the NY state minimum wage on young, less- educated workers. I re-examine their estimates using data from the full CPS, rather than the smaller MORG files they use. I find no evidence whatsoever of a negative employment impact. When the two data sources conflict, there can be no doubt that the full CPS, which is the source of official employment data, is the more appropriate. Furthermore, when I repeat their analysis using three states and the District of Columbia that also had a substantial increase in the state minimum wage, I find evidence of a small positive employment effect.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 14-06.
Length: 25 pages
Date of creation: 2014
Date of revision:
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Find related papers by JEL classification:
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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- Joseph J. Sabia & Richard V. Burkhauser & Benjamin Hansen, 2012. "Are the Effects of Minimum Wage Increases Always Small? New Evidence from a Case Study of New York State," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 65(2), pages 350-376, April.
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