An Empirical Analysis of Localized Minimum Wage Effects on Local Unemployment Rates
Guy , Joseph Carl
This thesis examines the association between localized minimum wages and the unemployment rate. It focuses on the county-level unemployment rate and minimum wages set by local municipalities. We examine data from 2010 through 2017 for 35 cities that have set minimum wages higher than the state or federally mandated level across the states of Arizona, California, Minnesota, and New York. We created a panel data set using information from the Federal Reserve of St. Louis website and the Area Health Resource File. We estimated panel data models to assess the potential impact of locally set minimum wages on local unemployment rates. We found a negative association between local unemployment rates and locally set minimum wages that are higher than the ones set by the state or federal authorities. Our results suggest that policymakers may need to put more weight on local demographic and economic indicators when setting a generalized state and/or federal level minimum wage.
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Clustering Around the Wage Floor: the Effects of the Federal Minimum Wage on Employment In Puerto Rico Reyes Jove, Tatiana (Georgetown University, 2017)Despite the wealth of literature on the effects of the minimum wage on employment in the contiguous U.S., there is a dearth of comparable studies for the island of Puerto Rico. This paper exploits U.S. Census data for the ...