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An evaluation of the relationship between minimum wage and unemployment: does the local cost-of-living matter?

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  • Christopher S. Brunt
  • Anthony G. Barilla

Abstract

This article examines the relationship between federal, state and municipal minimum wage laws, local cost-of-living (COL) and the unemployment rate. It finds a strong statistically significant positive relationship between minimum wages and unemployment once COL is taken into account. Our results suggest that federal minimum wage policy is likely to have more harmful effects in rural/low cost areas.

Suggested Citation

  • Christopher S. Brunt & Anthony G. Barilla, 2018. "An evaluation of the relationship between minimum wage and unemployment: does the local cost-of-living matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 25(7), pages 493-498, April.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:7:p:493-498
    DOI: 10.1080/13504851.2017.1340562
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    Cited by:

    1. Otterby, Dawn & Crawley, Andrew & Gabe, Todd, 2023. "Effects of the Minimum Wage on U.S. County Labor Markets," MPRA Paper 116162, University Library of Munich, Germany.

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