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

@article{Cengiz2018TheEO,
  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},
  year={2018}
}
We propose a novel method that infers the employment effect of a minimum wage increase by comparing the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it. Using state-level variation in U.S. minimum wages, we implement our method by providing new estimates on the effect of the minimum wage on the frequency distribution of hourly wages. First, we present a case study of a large, indexed minimum wage increase using administrative data on… 
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