Distributional impacts of a local living wage increase with ability sorting
I develop a model of ability sorting of low-wage workers across multiple markets when one market substantially increases its wage floor using a living wage. The wage floor increase can increase or decrease employment probabilities in both covered and uncovered markets.
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- Tom Ahn & Peter Arcidiacono & Walter Wessels, 2011. "The Distributional Impacts of Minimum Wage Increases When Both Labor Supply and Labor Demand Are Endogenous," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(1), pages 12-23, January.
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