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Boundary Discontinuity Methods and Policy Spillovers

Author

Listed:
  • Ekaterina S. Jardim
  • Mark C. Long
  • Robert Plotnick
  • Emma van Inwegen
  • Jacob L. Vigdor
  • Hilary Wething

Abstract

The boundary discontinuity method of causal inference may yield misleading results if a policy’s impacts do not stop at the border of the implementing jurisdiction. We use geographically precise longitudinal employment data documenting worker job-to-job mobility to study policy spillovers in the context of three local minimum wage increases. Estimated spillover impacts on wages and hours are statistically significant, geographically diffuse, and sufficient to create concern regarding interpretation of results even using not-immediately-adjacent regions as controls. Spillover effects appear less concerning with smaller interventions or those or adopted in a smaller jurisdiction.

Suggested Citation

  • Ekaterina S. Jardim & Mark C. Long & Robert Plotnick & Emma van Inwegen & Jacob L. Vigdor & Hilary Wething, 2022. "Boundary Discontinuity Methods and Policy Spillovers," NBER Working Papers 30075, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30075
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    Cited by:

    1. Dharmasankar, Sharada & Yoo, Hoyoung, 2023. "Assessing the main and spillover effects of Seattle's minimum wage on establishment decisions," Regional Science and Urban Economics, Elsevier, vol. 99(C).

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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