RT Journal Article SR Electronic T1 Beyond Labor Market Outcomes JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 0518-9524R2 DO 10.3368/jhr.58.1.0518-9524R2 A1 Alonso, Cristian YR 2020 UL http://jhr.uwpress.org/content/early/2020/06/30/jhr.58.1.0518-9524R2.abstract AB How effective is the minimum wage at raising nondurable household consumption through the redistribution of income towards low-wage workers? To address this question, I use novel data on retail sales by county and exploit variation in the minimum wage rate across the U.S. and over time. I find that a 10 percent increase in the minimum wage raises sales by 0.6 percent in nominal terms and 0.4 percent in real terms. These large effects are suggestive of high marginal propensities to spend on nondurables out of minimum wage hikes. The expenditure response emerges even when exploiting only within-state variation.