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Minimum Wage, Employment, and Margins of Adjustment Evidence from Employer-Employee Matched Panel Data
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DOI：10.3368/jhr.0820-11082R3.png)
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Abstract
En 中文
We decompose the employment effect of the minimum wage into changes in employment within continued establishments and changes due to the exits of establishments. For small-sized establishments, we distinguish between other labor adjustment margins, such as hours worked, hiring, and separation at the individual level. Using employer-employee matched panel data, we show that the magnitude and channels of the employment effect differ by establishment size and industry. We find a negative effect of the minimum wage on employment growth, which is highly concentrated among small establishments. In particular, in the food and lodging and manufacturing industries, a substantial part of the effect is driven by business closing.
Keywords:
LABOR-MARKET
IMPACT
SUBSTITUTION
INEQUALITY
Journal
J
IF:
6
Papers:
2.8K
Citations:
6.6K
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