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Research ArticleArticles

Effects of the Minimum Wage on Employment Dynamics

Jonathan Meer and Jeremy West
Journal of Human Resources, March 2016, 51 (2) 500-522; DOI: https://doi.org/10.3368/jhr.51.2.0414-6298R1
Jonathan Meer
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Jeremy West
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Abstract

The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment. We argue that the minimum wage will impact employment over time through changes in growth rather than an immediate drop in relative employment levels. We show that commonly used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects. Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years. This finding is supported using several empirical specifications.

  • Received April 2014.
  • Accepted July 2015.
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Journal of Human Resources: 51 (2)
Journal of Human Resources
Vol. 51, Issue 2
31 Mar 2016
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Effects of the Minimum Wage on Employment Dynamics
Jonathan Meer, Jeremy West
Journal of Human Resources Mar 2016, 51 (2) 500-522; DOI: 10.3368/jhr.51.2.0414-6298R1

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Effects of the Minimum Wage on Employment Dynamics
Jonathan Meer, Jeremy West
Journal of Human Resources Mar 2016, 51 (2) 500-522; DOI: 10.3368/jhr.51.2.0414-6298R1
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  • Article
    • Abstract
    • I. Introduction
    • II. Theoretical and Econometric Framework
    • III. Data
    • IV. Results
    • V. Conclusion
    • Appendix Estimating Growth Effects for Staggered Treatments
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  • Minimum Wage, Employment, and Margins of Adjustment: Evidence from Employer-Employee Matched Panel Data
  • Beyond Labor Market Outcomes: The Impact of the Minimum Wage on Nondurable Consumption
  • Why Are Low-Wage Workers Signing Noncompete Agreements?
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  • Crossing Borders
  • The Evolution of the Wage Elasticity of Labor Supply over Time
  • The Effects of High School Remediation on Long-Run Educational Attainment
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