Unintended workplace safety consequences of minimum wages

• 成果类型: Article
• 署名作者: Liu, Qing; Lu, Ruosi; Sun, Stephen Teng; Zhang, Meng
• 署名单位: Renmin University of China; University of International Business & Economics; City University of Hong Kong; Capital University of Economics & Business
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2024.105247
• 发表日期: 2024
• 关键词: Minimum wage; Workplace safety; financial constraints; Labor market regulations

摘要

We investigate the unintended impact of minimum wage increases on workplace safety. Using establishmentlevel data from the United States and a cohort-based stacked difference-in-differences design, we find that large increases in minimum wages have significant adverse effects on workplace safety. Our findings indicate that, on average, a large minimum wage increase results in a 4.6 percent increase in the total case rate. Event study estimates show that this adverse effect persists in the medium run. Furthermore, we find a more salient effect for firms more likely to be financially constrained or subject to a higher labor market rigidity in firing workers. We provide suggestive evidence that small minimum wage increases might reduce injury rates, highlighting the potential heterogeneity in the impact of minimum wage changes. We do not find evidence that capital-labor substitution could be behind the findings.