Working Paper: NBER ID: w25128
Authors: Camilla Adams; Jonathan Meer; Carly Will Sloan
Abstract: Labor market search-and-matching models posit supply-side responses to minimum wage increases that may lead to improved matches and lessen or even reverse negative employment effects. Yet there is sparse empirical evidence on this crucial assumption. Using event study analysis of recent minimum wage increases, we find that these changes do not affect the likelihood of searching, but do lead to large yet very transitory spikes in search effort by individuals already looking for work. These results are not driven by changes in the composition of searchers.
Keywords: No keywords provided
JEL Codes: J22; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Minimum wage increases (J38) | Job search effort (J68) |
| Minimum wage increases (J38) | Likelihood of searching for work (J29) |
| Transitory spike in search effort among individuals already looking for work (J69) | Job search effort (J68) |
| Job search effort (J68) | Likelihood of searching for work (J29) |
| Minimum wage increases (J38) | New searchers entering the labor market (J69) |