IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v97y2025ics0927537125000892.html

Minimum wage increases and vacancies

Author

Listed:
  • Kudlyak, Marianna
  • Tasci, Murat
  • Tüzemen, Didem

Abstract

We use a unique data set and a novel identification strategy to estimate the effect of minimum wage increases on vacancy postings. Utilizing occupation-specific county-level vacancy data from the Conference Board’s Help Wanted Online for 2005-18, we find that state-level minimum wage increases lead to substantial declines in existing and new vacancy postings in occupations with a larger share of workers earning close to the effective minimum wage. We estimate that a 10 percent increase in the state-level effective minimum wage reduces vacancies in these occupations relative to the rest by 2.4 percent in the same quarter, and the cumulative effect is as large as 4.5 percent a year later. Focusing on vacancies rather than employment allows us to highlight changes in firms’ hiring intentions in response to minimum wage increases. Coupled with the earlier U.S. evidence showing reductions in separations following minimum wage hikes, our finding of declining vacancies contributes to the broader empirical literature suggesting negligible effects of minimum wage increases on net employment.

Suggested Citation

  • Kudlyak, Marianna & Tasci, Murat & Tüzemen, Didem, 2025. "Minimum wage increases and vacancies," Labour Economics, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:labeco:v:97:y:2025:i:c:s0927537125000892
    DOI: 10.1016/j.labeco.2025.102765
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927537125000892
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.labeco.2025.102765?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:97:y:2025:i:c:s0927537125000892. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.