Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties

Dubé, Arindrajit; Lester, T. William; Reich, Michael

doi:10.2139/ssrn.1005523

Cited by 278 publications

(480 citation statements)

References 17 publications

Supporting

Mentioning

457

Contrasting

Unclassified

Order By: Relevance

“…Precision aside, the point estimate is squarely in the range of previous estimates in the literature, especially those that use a border discontinuity design (e.g. Dube, Lester, and Reich (2010) and Addison, Blackburn, and Cotti (2009) …”

Section: Resultsmentioning

confidence: 93%

“…Strikingly, the largest negative entry appears in manufacturing, where only 3 and 10 percent of its workforce is paid within 110 and 150 percent of the minimum wage and where previous work (e.g. Dube, Lester, and Reich (2010)) has found no earnings or employment effects of minimum wage hikes. In contrast, our study concentrates on the restaurant industry, where just over half of workers are paid within 150 percent of the minimum wage.…”

Section: Literature Reviewmentioning

confidence: 99%

“…To circumvent this problem, we focus on restaurants in counties near state borders, as in Dube, Lester, and Reich (2010). Geographically nearby restaurants in different states with different minimum wages likely face similar economic environments (other than having a different minimum wage).…”

Section: Empirical Strategymentioning

confidence: 99%

“…The QCEW provides detailed information on each establishment's name, location, and employment level at a monthly frequency. We follow Card and Krueger (1994), Addison, Blackburn, and Cotti (2009), and Dube, Lester, and Reich (2010), among others, and compare restaurants that reside in counties near state borders where the minimum wage has risen on one side of the border but not the other. Our results suggest that exit and entry, particularly among chains, increases in the year following a minimum wage hike.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Firm Dynamics and the Minimum Wage: A Putty-Clay Approach

2013

View full text Add to dashboard Cite

We document two new findings about the industry-level response to minimum wage hikes. First, restaurant exit and entry both rise following a hike. Second, there is no change in employment among continuing restaurants. We develop a model of industry dynamics based on putty-clay technology that is consistent with these findings. In the model, continuing restaurants cannot change employment, and thus industry-level adjustment occurs gradually through exit of labor-intensive restaurants and entry of capital-intensive restaurants. We also show that the putty-clay model matches many other findings in the empirical minimum wage literature, including a small short run disemployment effect of the minimum wage and complete price pass-through. Interestingly, however, the putty-clay model produces a larger long run disemployment effect of the minimum wage.

show abstract

Section: Resultsmentioning

confidence: 93%

Section: Literature Reviewmentioning

confidence: 99%

Section: Empirical Strategymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Firm Dynamics and the Minimum Wage: A Putty-Clay Approach

2013

View full text Add to dashboard Cite

show abstract

“…Abowd et al 1999;Stewart 2004;Draca et al 2011) or regionalized industrial data (e.g. Dube et al 2010). In the tradition of Card and Krueger (1994), these studies rely on the difference-in-difference (DiD) approach and intend to investigate the (causal) impact of a wage floor on economic outcomes.…”

Section: Studies Based On Quasi-natural Experimentsmentioning

confidence: 99%

Minimum wages in German industries—what does the evidence tell us so far?

Möller

2012

J Labour Market Res

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Abstract Since the effects of a minimum wage on wages and employment are depending on a bunch of factors and are by no means determined theoretically in an unambiguous way, empirical analysis is required. German studies on the effects of minimum wages in the past often did not meet international methodological standards. International minimum wage research today is typically based on micro data analysis. Hereby the development of economic variables before and after the introduction of a minimum wage for a treatment group is compared to that of a control group (difference-in-difference approach). A corresponding method is applied in a series of recent German studies aiming at the evaluation of the introduction of the minimum wage in a number of industrial branches. Through these studies minimum wage research in Germany has made substantial progress and caught up to standards of the international literature. However, there are still open methodological questions that are discussed in this article. A central finding from the existing minimum wage studies in Germany is that disemployment effects are hard to find. By contrast, wage effects can be identified in most studies, especially in the eastern part of Germany. Terms of use: Documents in Keywords Minimum wages

show abstract

A Tale of Two Borders: Use‐Value Assessment, Land Development, and Irrigation Investment

Bigelow

Kuethe

2020

American J Agri Economics

View full text Add to dashboard Cite

Since 1960, all 50 states in the US have adopted some form of preferential tax treatment for farmland. These provisions often take the form of use‐value assessment, where farmland is taxed on the basis of its value in agricultural production, as opposed to its full market value. While the main goal of use‐value assessment is to slow the conversion of farmland to non‐agricultural uses, other channels of influence are also possible, such as those stemming from reinvestment of foregone tax expenses. Despite its widespread nature, there is little empirical evidence pertaining to the influence of use‐value assessment on land‐use or investment decisions. Using a postmatching difference‐in‐differences framework, we exploit the temporal and spatial discontinuities surrounding the adoption of use‐value assessment in Kansas in 1989 to measure how use‐value assessment affected plot‐level land development and irrigation investment decisions. The results of our analysis indicate that, as intended, the use‐value assessment policy curtailed development in the Kansas City metropolitan area. Evidence regarding the potential investment‐spurring effects of use‐value assessment is more mixed, suggesting that farmers may have increased irrigation in some areas because of use‐value assessment‐induced tax savings.

show abstract

Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties

Cited by 278 publications

References 17 publications

Firm Dynamics and the Minimum Wage: A Putty-Clay Approach

Firm Dynamics and the Minimum Wage: A Putty-Clay Approach

Minimum wages in German industries—what does the evidence tell us so far?

A Tale of Two Borders: Use‐Value Assessment, Land Development, and Irrigation Investment

Contact Info

Product

Resources

About