Product market evidence on the employment effects of the minimum wage

• 成果类型: Article
• 署名作者: Aaronson, Daniel; French, Eric
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/508734
• 发表日期: 2007
• 页码: 167-200
• 关键词: fast-food industry; pass-through; substitution; unemployment; COMPETITION; ECONOMICS; britain; demand

摘要

We infer the employment response to a minimum wage change by calibrating a model of employment for the restaurant industry. Whereas perfect competition implies that employment falls and prices rise after a minimum wage increase, the monopsony model potentially implies the opposite. We show that estimated price responses are consistent with the competitive model. We place fairly tight bounds on the employment response, with the most plausible parameter values suggesting that a 10% increase in the minimum wage lowers low-skill employment by 2%-4% and total restaurant employment by 1%-3%.