The Effect of Minimum Wages on Low-Wage Jobs: Evidence from the United States Using a Bunching Estimator

  title={The Effect of Minimum Wages on Low-Wage Jobs: Evidence from the United States Using a Bunching Estimator},
  author={Doruk Cengiz and Arindrajit Dub{\'e} and Attila Sandor Lindner and Ben Zipperer},
  journal={NBER Working Paper Series},
We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach. We first estimate the effect of the minimum wage increase on employment changes by wage bins throughout the hourly wage distribution. We then focus on the bottom part of the wage distribution and compare the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs… 

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