Do minimum wage hikes lead to employment destruction? Evidence from a regression discontinuity design in Argentina

A-Tier
Journal: Journal of Development Economics
Year: 2026
Volume: 178
Issue: C

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

In this study, we examine the impact of eight minimum wage increases in Argentina during the early 21st century by analyzing administrative records of registered employment. Utilizing a regression discontinuity design, we compare job separation rates between a group affected by the minimum wage hikes and a control group slightly out of their legal scope. Our findings indicate that, overall, these minimum wage hikes had no significant impact on separation rates. However, the 2008 increase triggered a 4.8 percentage point (19%) decrease in separations, casting doubt on the disemployment effects of minimum wages. Overall, these findings suggest that during economic upswings, minimum wage increases may have little to no adverse impact on job destruction.

Technical Details

RePEc Handle
repec:eee:deveco:v:178:y:2026:i:c:s0304387825001099
Journal Field
Development
Author Count
2
Added to Database
2026-01-24