Gendered Effects of the Minimum Wage

Minimum wages, wage dispersion and financial constraints in firms

“…To the best of our knowledge, this paper is the first to study the interaction of financial frictions with the minimum wage. Our paper is related to Berger et al (2022), Drechsel-Grau (2022) and Di Nola et al (2023 who investigate minimum wages in structural macroeconomic models with frictions, but none of these look into financial constraints. The empirical e↵ect of minimum wages on firms is documented in a large and fast-growing literature.…”

“…Engbom and Moser (2022), Dustmann et al (2022), Bossler and Schank (2023), or Cengiz et al (2019) document positive e↵ects on productivity and employment of a minimum wage due to reallocation of workers to higher-paying and more productive firms. Di Nola et al (2023) show that a minimum wage triggers reallocation of workers from marginal employment to jobs with longer hours, in particular for women. Link (2022) documents that firms trade o↵ cuts in employment with higher prices.…”