In a Hot Job Market, the Minimum Wage Becomes an Afterthought
https://www.nytimes.com/2023/08/23/business/economy/minimum-wage.html
The federal wage floor of $7.25 is increasingly irrelevant when even most teenagers are earning twice that. But what happens when the economy cools?
https://www.nytimes.com/2023/08/23/business/economy/minimum-wage.html
The federal wage floor of $7.25 is increasingly irrelevant when even most teenagers are earning twice that. But what happens when the economy cools?
High Minimum Wages and the Monopsony Puzzle
https://irle.berkeley.edu/publications/working-papers/high-minimum-wages-and-the-monopsony-puzzle/
Abstract
We present the first causal analysis of recent large minimum wage increases, focusing on 47 larger U.S. counties that reached $15 or more by 2022q1. Using stacked county-level synthetic control estimators, we find substantial pay growth, no disemployment effects and reduced wage inequality. Our novel procedure ameliorates pandemic-related bias. We pose and address a monopsony puzzle: Researchers often invoke monopsony to explain absent negative employment effects, yet the model generally predicts positive employment effects. When we reduce selection and attenuation biases—by excluding areas with local minimum wages and high-wage counties—we find large, significant positive employment effects.
Related: https://nymag.com/intelligencer/2023/05/new-study-finds-a-high-minimum-wage-creates-jobs.html
Minimum Wage Increases: Recent Evidence and Policy
Trade-Offs
https://www.minneapolisfed.org/events/2023/minimum-wage-increases-recent-evidence-and-policy-trade-offs
https://irle.berkeley.edu/publications/working-papers/high-minimum-wages-and-the-monopsony-puzzle/
Abstract
We present the first causal analysis of recent large minimum wage increases, focusing on 47 larger U.S. counties that reached $15 or more by 2022q1. Using stacked county-level synthetic control estimators, we find substantial pay growth, no disemployment effects and reduced wage inequality. Our novel procedure ameliorates pandemic-related bias. We pose and address a monopsony puzzle: Researchers often invoke monopsony to explain absent negative employment effects, yet the model generally predicts positive employment effects. When we reduce selection and attenuation biases—by excluding areas with local minimum wages and high-wage counties—we find large, significant positive employment effects.
https://www.minneapolisfed.org/events/2023/minimum-wage-increases-recent-evidence-and-policy-trade-offs
Making the Case for a Higher Minimum Wage
https://www.milkenreview.org/articles/making-the-case-for-a-higher-minimum-wage
https://www.milkenreview.org/articles/making-the-case-for-a-higher-minimum-wage
The Economist Brief - What harm do minimum wages do?
https://www.economist.com/schools-brief/2020/08/15/what-harm-do-minimum-wages-do
https://www.economist.com/schools-brief/2020/08/15/what-harm-do-minimum-wages-do