Minimum Wage Shocks, Employment Flows, and Labor Market Frictions

A-Tier
Journal: Journal of Labor Economics
Year: 2016
Volume: 34
Issue: 3
Pages: 663 - 704

Authors (3)

Arindrajit Dube (University of Massachusetts-Am...) T. William Lester (not in RePEc) Michael Reich (not in RePEc)

Score contribution per author:

1.345 = (α=2.02 / 3 authors) × 2.0x A-tier

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

Abstract

We provide the first estimates of the effects of minimum wages on employment flows in the US labor market, identifying the impact by using policy discontinuities at state borders. We find that minimum wages have a sizable negative effect on employment flows but not on stocks. Separations and accessions fall among affected workers, especially those with low tenure. We do not find changes in the duration of nonemployment for separations or hires. This evidence is consistent with search models with endogenous separations.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/685449
Journal Field
Labor
Author Count
3
Added to Database
2026-01-25