IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/1630.html
   My bibliography  Save this paper

Effects of the Minimum Wage on Employment of Young Adults with Cognitive Disabilities

Author

Listed:
  • Chiswick, Barry
  • Corman, Hope
  • Dave, Dhaval
  • Reichman, Nancy E.

Abstract

This study analyzes, for the first time, the effect of increases in the minimum wage on the labor market outcomes of working age adults with cognitive disabilities, a vulnerable and low-skilled sector of the actual and potential labor pool. Using data from the American Community Survey (2008-2023), we estimated effects of the minimum wage on employment, labor force participation, weeks worked, and hours worked among working age individuals with cognitive disabilities using a generalized difference-in-differences research design. We found that a higher effective minimum wage leads to reduced employment and labor force participation among individuals with cognitive disabilities but has no significant effect on labor supply at the intensive margin for this group. Adverse impacts were particularly pronounced for those with lower educational attainment. In contrast, we found no significant labor market effects of an increase in the minimum wage for individuals with physical disabilities or in the non-disabled population.

Suggested Citation

  • Chiswick, Barry & Corman, Hope & Dave, Dhaval & Reichman, Nancy E., 2025. "Effects of the Minimum Wage on Employment of Young Adults with Cognitive Disabilities," GLO Discussion Paper Series 1630, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1630
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/320558/1/GLO-DP-1630.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cl'ement de Chaisemartin & Xavier D'Haultf{oe}uille, 2020. "Difference-in-Differences Estimators of Intertemporal Treatment Effects," Papers 2007.04267, arXiv.org, revised Dec 2024.
    2. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2015. "Disability Insurance and the Great Recession," Working Papers 1088, RAND Corporation.
    3. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2015. "Disability Insurance and the Great Recession," American Economic Review, American Economic Association, vol. 105(5), pages 177-182, May.
    4. Kurt Schmidheiny & Sebastian Siegloch, 2023. "On event studies and distributed‐lags in two‐way fixed effects models: Identification, equivalence, and generalization," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(5), pages 695-713, August.
    5. repec:osf:osfxxx:ac5ru_v1 is not listed on IDEAS
    6. Mincer, Jacob, 1976. "Unemployment Effects of Minimum Wages," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 87-104, August.
    7. Dean, David & Pepper, John & Schmidt, Robert & Stern, Steven, 2019. "The effects of youth transition programs on labor market outcomes of youth with disabilities," Economics of Education Review, Elsevier, vol. 68(C), pages 68-88.
    8. Charles C. Brown & Daniel S. Hamermesh, 2019. "Wages and Hours Laws: What Do We Know? What Can Be Done?," NBER Working Papers 25942, National Bureau of Economic Research, Inc.
    9. Maestas, Nicole & Mullen, Kathleen J. & Strand, Alexander, 2021. "The effect of economic conditions on the disability insurance program: Evidence from the great recession," Journal of Public Economics, Elsevier, vol. 199(C).
    10. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    11. Almalky, Hussain A., 2020. "Employment outcomes for individuals with intellectual and developmental disabilities: A literature review," Children and Youth Services Review, Elsevier, vol. 109(C).
    12. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    13. Hollenbach, Florian M & Egerod, Benjamin, 2024. "How many is enough? Sample Size in Staggered Difference-in-Differences Designs," OSF Preprints ac5ru, Center for Open Science.
    14. Melayne Morgan McInnes & Orgul Demet Ozturk & Suzanne McDermott & Joshua R. Mann, 2010. "Does supported employment work?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(3), pages 506-525.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
    2. Santiago Garriga & Dario Tortarolo, 2024. "Wage effects of means-tested transfers: Incidence implications of using firms as intermediaries," IFS Working Papers W24/49, Institute for Fiscal Studies.
    3. Fabra, Natalia & Gutiérrez, Eduardo & Lacuesta, Aitor & Ramos, Roberto, 2024. "Do renewable energy investments create local jobs?," Journal of Public Economics, Elsevier, vol. 239(C).
    4. Flavio de Carolis & Vinzenz Peters, 2025. "European SMEs, Corporate Finance and Economic Resilience to Floods," Working Papers 832, DNB.
    5. Leila Bengali & Mary C. Daly & Olivia Lofton & Robert G. Valletta, 2021. "The Economic Status of People with Disabilities and Their Families since the Great Recession," The ANNALS of the American Academy of Political and Social Science, , vol. 695(1), pages 123-142, May.
    6. Simon Freyaldenhoven & Christian B. Hansen & Jorge Pérez Pérez & Jesse M. Shapiro & Constantino Carreto, 2024. "Policy Effect Estimation and Visualization in Linear Panel Event-Study Designs: Introducing the xtevent Package," Working Papers 2024-09, Banco de México.
    7. Cabrera-Hernández, Francisco & Padilla-Romo, María & Peluffo, Cecilia, 2023. "Full-time schools and educational trajectories: Evidence from high-stakes exams," Economics of Education Review, Elsevier, vol. 96(C).
    8. Francesconi, Marco & Sonedda, Daniela, 2024. "Does Weaker Employment Protection Lower the Cost of Job Loss?," IZA Discussion Papers 17374, Institute of Labor Economics (IZA).
    9. Michael Anderson & Yonatan Ben-Shalom & David Stapleton & Emily Roessel, "undated". "The Impact of the Great Recession on SSDI Awards: A Birth-Cohort Analysis," Mathematica Policy Research Reports b59814bdab3b477db7e5600d7, Mathematica Policy Research.
    10. Aigerim Sarsenbayeva & Dinara Alpysbayeva, 2025. "Unequal access to healthcare and inadequate financing have highlighted the need for healthcare reform to increase efficiency while nsuring equity in healthcare financing worldwide. Our study evaluates," MUNI ECON Working Papers 2025-03, Masaryk University.
    11. Isabelle Chort & Berk Öktem, 2024. "Agricultural shocks, coping policies and deforestation: Evidence from the coffee leaf rust epidemic in Mexico," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1020-1057, May.
    12. Philipp Breidenbach & Timo Mitze, 2022. "Large-scale sport events and COVID-19 infection effects: evidence from the German professional football ‘experiment’," The Econometrics Journal, Royal Economic Society, vol. 25(1), pages 15-45.
    13. Pubali Chakraborty & Kanika Mahajan, 2023. "Scaling Up to Decrease the Divide: Firm Size and Female Employment," Working Papers 103, Ashoka University, Department of Economics, revised 05 Feb 2025.
    14. Caliendo, Marco & Olthaus, Rebecca & Pestel, Nico, 2025. "Long-term employment effects of the minimum wage in Germany: New data and estimators," Labour Economics, Elsevier, vol. 92(C).
    15. Gopi Shah Goda & Emilie Jackson & Lauren Hersch Nicholas & Sarah See Stith, 2023. "The impact of Covid-19 on older workers’ employment and Social Security spillovers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 813-846, April.
    16. Andersen, Asbjørn Goul & Markussen, Simen & Røed, Knut, 2019. "Local labor demand and participation in social insurance programs," Labour Economics, Elsevier, vol. 61(C).
    17. Mensah, Edouard R. & Filipski, Mateusz J., 2022. "Saving for a rainy day: the impact of natural disasters on savings rates," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322266, Agricultural and Applied Economics Association.
    18. Lindgren, Erik & Pettersson-Lidbom, Per & Tyrefors, Björn, 2021. "The Causal Effect of Transport Infrastructure: Evidence from a New Historical Database," Working Paper Series 1407, Research Institute of Industrial Economics.
    19. Damian Clarke & Kathya Tapia-Schythe, 2021. "Implementing the panel event study," Stata Journal, StataCorp LLC, vol. 21(4), pages 853-884, December.
    20. Hoffmann, Christin & Byrukuri Gangadhar, Shanmukha Srinivas & Müsgens, Felix, 2025. "Smells like Green Energy: The Impact of Bioenergy Production on Residential Property Values in Germany," Energy Economics, Elsevier, vol. 145(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:glodps:1630. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    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.