Effects of the minimum wage on the nonprofit sector

C-Tier
Journal: Oxford Economic Papers
Year: 2023
Volume: 75
Issue: 4
Pages: 1012-1032

Authors (2)

Jonathan Meer (not in RePEc) Hedieh Tajali (Heriot-Watt University)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The nonprofit sector’s ability to absorb increases in labor costs differs from the private sector in a number of ways. We analyse how nonprofits are affected by changes in the minimum wage utilizing data from the Bureau of Labor Statistics and the Internal Revenue Service, linked to state minimum wages. We examine changes in reported employment and volunteering, as well as other financial statements such as revenues and expenses. The results from both datasets show a negative impact on employment for states with large statutory minimum wage increases. We observe some evidence for a reduction in the number of nonprofit establishments, fundraising expenses, and revenues from contributions.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:75:y:2023:i:4:p:1012-1032.
Journal Field
General
Author Count
2
Added to Database
2026-01-29