Minimum Wages and Firm Value

• 成果类型: Article
• 署名作者: Bell, Brian; Machin, Stephen
• 署名单位: University of London; King's College London; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/693870
• 发表日期: 2018
• 页码: 159-195
• 关键词: employment; IMPACT; industry; US

摘要

How does firm value change in response to a minimum wage hike? This paper exploits the announcement of a big change in the UK minimum wage that was both totally unanticipated and free of uncertainty. The stock market response to this is examined in an event study setting. The analysis uncovers significant falls in the stock market value of low-wage firms. In light of this finding, the paper concludes by discussing magnitudes of response, including longer-term modes of firm adjustment to the cost shock induced by the minimum wage hike.