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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

  • David Neumark
  • Matthew Thompson
  • Francesco Brindisi
  • Leslie Koyle
  • Clayton Reck

Policy researchers often have to estimate the future effect of imposing a policy in a particular location. There is often historical information 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 historical evidence from other locations with information and data specific to the jurisdiction in question. In this paper, we illustrate and use this approach in estimating the impact of a proposed living wage mandate for New York City. We explain how we combined elements of "ex ante" evaluations of living wage laws with before-and-after (longitudinal) estimates of the effects of living wage laws. We also incorporate detailed location-specific information on workers, families, and employers using administrative data and other new public data sources.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18055.

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Date of creation: May 2012
Date of revision:
Publication status: published as Neumark, David, Matthew Thompson, Francesco Brindisi, Leslie Koyle, and Clayton Reck, 2013, “Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data: Evidence for New York City,” Economic Development Quarterly, pp. 271-83.
Handle: RePEc:nbr:nberwo:18055
Note: LS
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  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. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
  3. David Fairris & Leon Fernandez Bujanda, 2008. "The Dissipation of Minimum Wage Gains for Workers through Labor-Labor Substitution: Evidence from the Los Angeles Living Wage Ordinance," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 473-496, October.
  4. Bénédicte Vidaillet & V. D'Estaintot & P. Abécassis, 2005. "Introduction," Post-Print hal-00287137, HAL.
  5. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, June.
  6. Ximing Wu & Jeffrey M. Perloff & Amos Golan, 2006. "Effects Of Government Policies On Urban And Rural Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(2), pages 213-235, 06.
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