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Employment Effects Of Two Northwest Minimum Wage Initiatives

Author

Listed:
  • LARRY D. SINGELL
  • JAMES R. TERBORG

Abstract

"This article exploits a natural experiment initiated by Oregon and Washington voter referendums to show that the minimum wage is a blunt instrument that differentially affects low-wage workers within and across industries. Specifically, employment growth specifications indicate that the minimum wage generates consistently negative employment effects for eating and drinking workers where the minimum is shown to be relatively binding, but not for hotel and lodging workers where the minimum is less binding. Regressions using job-specific want-ad data from Portland and Seattle newspapers also indicate a reduction in hiring solicitation relating to the extent that the minimum wage binds." ("JEL" J31, J38) Copyright 2006 Western Economic Association International.

Suggested Citation

  • Larry D. Singell & James R. Terborg, 2007. "Employment Effects Of Two Northwest Minimum Wage Initiatives," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 40-55, January.
  • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:1:p:40-55
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    References listed on IDEAS

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    Cited by:

    1. Paulina Broniatowska & Aleksandra Majchrowska & Zbigniew Zolkiewski, 2015. "Minimum wage and youth unemployment in local labor markets in Poland," Lodz Economics Working Papers 4/2015, University of Lodz, Faculty of Economics and Sociology.
    2. Sen, Anindya & Rybczynski, Kathleen & Van De Waal, Corey, 2011. "Teen employment, poverty, and the minimum wage: Evidence from Canada," Labour Economics, Elsevier, vol. 18(1), pages 36-47, January.
    3. Rohlin, Shawn M., 2011. "State minimum wages and business location: Evidence from a refined border approach," Journal of Urban Economics, Elsevier, vol. 69(1), pages 103-117, January.
    4. Lordan, Grace & Neumark, David, 2017. "People versus machines: the impact of minimum wages on automatable," LSE Research Online Documents on Economics 84060, London School of Economics and Political Science, LSE Library.
    5. Paulina Broniatowska & Aleksandra Majchrowska & Zbigniew Żółkiewski, 2015. "Minimum wage and youth unemployment in local labor markets in Poland," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 57-70.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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