The Effect of Minimum Wages on Employment: A Factor Model Approach

Totty, Evan

doi:10.1111/ecin.12472

Cited by 58 publications

(32 citation statements)

References 59 publications

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“…The authors argued that fast-food restaurants are not just a leading employer of low-wage workers, but also display high rates of compliance with minimum wage regulations. Many authors have subsequently chosen the restaurant and fast food industry to study federal and state level minimum wages Reich 2010, 2016;Cotti 2012, 2014;Neumark, Salas, and Wascher 2014;Allegretto, Dube, Reich, and Zipperer 2016;Totty 2017). Other authors have focused on retail (Kim and Taylor 1995;Addison, Blackburn, and Cotti 2008).…”

Section: What Is the Relevant Labor Market?mentioning

confidence: 99%

“…The ESD data contain industry (NAICS) codes, which permit us to estimate results using the restaurant industry proxy used in much of the prior literature (Dube et al 2010(Dube et al , 2016Addison et al 2012Addison et al , 2014Neumark et al 2014;Allegretto et al 2016;Totty 2017). 18 We measure employment both as the number of jobs (headcount) and the number of hours worked during the quarter.…”

Section: Basic Descriptionmentioning

confidence: 99%

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Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle

Jardim¹,

Long²,

Plotnick³

et al. 2017

135

137

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This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 in 2015 and to as much as $13 in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly wage rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by 6-7 percent, while hourly wages in such jobs increased by 3 percent. Consequently, total payroll for such jobs decreased, implying that the Ordinance lowered the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies.

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Section: What Is the Relevant Labor Market?mentioning

confidence: 99%

Section: Basic Descriptionmentioning

confidence: 99%

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle

Jardim¹,

Long²,

Plotnick³

et al. 2017

135

137

View full text Add to dashboard Cite

show abstract

“…As pointed out byBai (2009) andTotty (2017), violation of the i.i.d. assumption of the residuals may result in estimates that are consistent, but biased Gomez (2015).…”

mentioning

confidence: 79%

No one is alone: Strategic complementarities, capacity utilization, growth, and distribution

Petach

Tavani

2019

Structural Change and Economic Dynamics

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“…Employment elasticity and groups studied Data/approach Totty (2017) −0.01 to −0.03 for restaurant workers; −0.03 to −0.07 for teens.…”

Section: Authorsmentioning

confidence: 99%

The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns

Neumark

2019

German Economic Review

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I discuss the econometrics and the economics of past research on the effects of minimum wages on employment in the United States. My intent is to try to identify key questions raised in the recent literature, and some from the earlier literature, which I think hold the most promise for understanding the conflicting evidence and arriving at a more definitive answer about the employment effects of minimum wages. My secondary goal is to discuss how we can narrow the range of uncertainty about the likely effects of the large minimum wage increases becoming more prevalent in the United States. I discuss some insights from both theory and past evidence that may be informative about the effects of high minimum wages, and try to emphasize what research can be done now and in the near future to provide useful evidence to policymakers on the results of the coming high minimum wage experiment, whether in the United States or in other countries.

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The Effect of Minimum Wages on Employment: A Factor Model Approach

Cited by 58 publications

References 59 publications

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle

No one is alone: Strategic complementarities, capacity utilization, growth, and distribution

The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns

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