The Effect of Minimum Wage Policies on the Wage and Occupational Structure of Establishments

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Abstract

Using establishment-level panel data from the Occupational Employment and Wage Statistics program, I estimate the effect of minimum wage increases implemented by 10 states in 2014 and 2015. I show that minimum wage increases lead to wage spillovers within establishments. I find little evidence that minimum wage increases induce establishments to reorganize their occupational mix. Finally, I find that minimum wage increases propagate up the management hierarchy, leading to increased wages for supervisors. Nonetheless, I find that overall wage inequality decreases within establishments after minimum wage increases.

Original languageEnglish (US)
Pages (from-to)S291-S324
JournalJournal of Labor Economics
Volume41
Issue numberS1
DOIs
StatePublished - Oct 2023

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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