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Distributional impacts of a local living wage increase with ability sorting

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  • Ahn, Tom

Abstract

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.

Suggested Citation

  • Ahn, Tom, 2011. "Distributional impacts of a local living wage increase with ability sorting," Economics Letters, Elsevier, vol. 112(3), pages 283-286, September.
  • Handle: RePEc:eee:ecolet:v:112:y:2011:i:3:p:283-286
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    References listed on IDEAS

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    1. David Neumark & Scott Adams, 2003. "Do Living Wage Ordinances Reduce Urban Poverty?," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
    2. Ahn, Tom & Arcidiacono, Peter & Wessels, Walter, 2011. "The Distributional Impacts of Minimum Wage Increases When Both Labor Supply and Labor Demand Are Endogenous," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(1), pages 12-23.
    3. Scott Adams & David Neumark, 2005. "Living Wage Effects: New and Improved Evidence," Economic Development Quarterly, , vol. 19(1), pages 80-102, February.
    4. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1371-1391.
    5. Mincer, Jacob, 1976. "Unemployment Effects of Minimum Wages," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 87-104, August.
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    Cited by:

    1. Thomas Ahn & Aaron Yelowitz, 2015. "The short-run impacts of Connecticut's paid sick leave legislation," Applied Economics Letters, Taylor & Francis Journals, vol. 22(15), pages 1267-1272, October.

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