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Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data: Evidence for New York City

Author

Listed:
  • Neumark, David

    (University of California, Irvine)

  • Thompson, Matthew

    (Charles River Associates)

  • Brindisi, Francesco

    (New York City Office of Management and Budget)

  • Koyle, Leslie

    (Charles River Associates)

  • Reck, Clayton

    (Charles River Associates)

Abstract

Policy researchers often have to estimate the future effect of imposing a policy in a particular location. There is often evidence on the effects of similar policies in other jurisdictions, but no information on the effects of the policy in the jurisdiction in question. And the policy may have specific features not reflected in the experiences of other areas. It is then necessary to combine the evidence from other locations with detailed information and data specific to the jurisdiction in question, with which to simulate the effects of the policy in the new jurisdiction. We illustrate and use this approach in estimating the impact of a proposed living wage mandate for New York City, emphasizing how our ex ante simulations make use of detailed location-specific information on workers, families, and employers using administrative data and other new public data sources.

Suggested Citation

  • Neumark, David & Thompson, Matthew & Brindisi, Francesco & Koyle, Leslie & Reck, Clayton, 2012. "Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data: Evidence for New York City," IZA Discussion Papers 7113, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7113
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    References listed on IDEAS

    as
    1. David Neumark & Mark Schweitzer & William Wascher, 2005. "The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 867-894.
    2. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
    3. David Neumark & Matthew Thompson & Francesco Brindisi & Leslie Koyle & Clayton Reck, 2012. "Estimating the Economic Impacts of Living Wage Mandates Using Ex Ante Simulations, Longitudinal Estimates, and New Public and Administrative Data: Evidence for New York City," NBER Working Papers 18055, National Bureau of Economic Research, Inc.
    4. Scott Adams & David Neumark, 2005. "Living Wage Effects: New and Improved Evidence," Economic Development Quarterly, , vol. 19(1), pages 80-102, February.
    5. Holzer, Harry J., 2008. "Living Wage Laws: How Much Do (Can) They Matter?," IZA Discussion Papers 3781, Institute of Labor Economics (IZA).
    6. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
    7. David Neumark & Scott Adams, 2003. "Do Living Wage Ordinances Reduce Urban Poverty?," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
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    Cited by:

    1. David Neumark & Matthew Thompson & Francesco Brindisi & Leslie Koyle & Clayton Reck, 2013. "Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data," Economic Development Quarterly, , vol. 27(4), pages 271-283, November.
    2. David Neumark & Matthew Thompson & Leslie Koyle, 2012. "The effects of living wage laws on low-wage workers and low-income families: What do we know now?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-34, December.

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    More about this item

    Keywords

    living wage; employment; poverty;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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