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Title: The Effects of an Increase in Minimum Wage on Labor Market Transitions: Evidence from NLSY
Resulting in 1 citation.
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Fadlon, Yariv |
The Effects of an Increase in Minimum Wage on Labor Market Transitions: Evidence from NLSY Working Paper, Department of Economics, Claremont Graduate University, October 2015 Cohort(s): NLSY97 Publisher: Claremont Colleges Working Paper in Economics Keyword(s): Labor Force Participation; Layoffs; Minimum Wage Permission to reprint the abstract has not been received from the publisher. This study tests the effects of a change in the binding real minimum wage on the likelihoods of hiring and separation. The findings suggest that an increase in the real minimum wage is associated with a reduction in the hiring rates that is mediated by a reduction in the likelihood of separation. The final results are a small and noisy decrease in the likelihood of employment and an increase in the likelihood of layoffs. The findings support an incomplete information model where employers pay a stochastic sunk cost at hiring. |
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Bibliography Citation
Fadlon, Yariv. "The Effects of an Increase in Minimum Wage on Labor Market Transitions: Evidence from NLSY." Working Paper, Department of Economics, Claremont Graduate University, October 2015. |