Minimum Wages and Teenage Childbearing: New Estimates Using a Dynamic Difference-in-Differences Approach

2021 ◽  
Author(s):  
Daniel I. Rees ◽  
Joseph Sabia ◽  
Rebecca Margolit
Keyword(s):  
Minimum Wages ◽  
Teenage Childbearing ◽  
Difference In Differences

Effects of Minimum Wages on Absence from Work Due to Illness

2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Juan Du ◽  
J. Paul Leigh
Keyword(s):  
Fixed Effects ◽  
Panel Study ◽  
Minimum Wages ◽  
Income Dynamics ◽  
Difference In Differences ◽  
Extensive And Intensive Margins ◽  
Absence Rate ◽  
Reported Health ◽  
Wage Earners ◽  
Absence From Work

AbstractUsing longitudinal data from the Panel Study of Income Dynamics for 1997–2013 and difference-in-differences (DD) and difference-in-difference-in-differences (DDD) techniques, we estimate the effects of minimum wages on absence from work due to own and others’ (such as children’s) illnesses. We use person fixed effects within both linear and two-part models, the latter to explore changes at extensive and intensive margins. A lower educated group (likely affected by minimum wages) is compared with higher educated groups (likely unaffected). Within the lower educated group, we find higher minimum wages are associated with lower rates of absence due to own and others’ illness combined and due to own illness alone, but not associated with absence due to others’ illness. A $1 increase in the real minimum wage results in 19 % (in DD model) and 32 % (DDD) decreases in the absence rate due to own illness evaluated at the mean. These findings are strongest for persons who are not employed year-round and among the lowest wage earners. In additional analysis, we show that these effects are likely not due to changes in labor supply or job-related attributes. Instead, we find a possible mechanism: higher minimum wages improve self-reported health for lower educated workers.

scholarly journals The Effect of Minimum Wages on Low-Wage Jobs*

2019 ◽  
Vol 134 (3) ◽  
pp. 1405-1454 ◽  
Author(s):  
Doruk Cengiz ◽  
Arindrajit Dube ◽  
Attila Lindner ◽  
Ben Zipperer
Keyword(s):  
Minimum Wage ◽  
State Level ◽  
The United States ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Employment Effect ◽  
Hourly Wage ◽  
Difference In Differences ◽  
Bottom Part ◽  
Demographic Groups

Abstract We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach. We first estimate the effect of the minimum wage increase on employment changes by wage bins throughout the hourly wage distribution. We then focus on the bottom part of the wage distribution and compare the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it to infer the employment effect. We find that the overall number of low-wage jobs remained essentially unchanged over the five years following the increase. At the same time, the direct effect of the minimum wage on average earnings was amplified by modest wage spillovers at the bottom of the wage distribution. Our estimates by detailed demographic groups show that the lack of job loss is not explained by labor-labor substitution at the bottom of the wage distribution. We also find no evidence of disemployment when we consider higher levels of minimum wages. However, we do find some evidence of reduced employment in tradeable sectors. We also show how decomposing the overall employment effect by wage bins allows a transparent way of assessing the plausibility of estimates.

How effective are enforcement measures for compliance with the minimum wage? Evidence from Germany

2020 ◽  
pp. 0143831X2096219
Author(s):  
Mario Bossler ◽  
Ursula Jaenichen ◽  
Simeon Schächtele
Keyword(s):  
High Risk ◽  
Minimum Wage ◽  
Minimum Wages ◽  
Difference In Differences ◽  
Hours Worked ◽  
Enhancing Effect ◽  
Employment Data

The extent of non-compliance with minimum wages is heavily debated, but little is known about the effectiveness of enforcement measures. Following the introduction of a national minimum wage in Germany in 2015, employers in a catalogue of industries deemed at high risk of non-compliance were subject to more stringent enforcement requirements, such as an obligation to record hours worked. Using national administrative employment data, in this study the authors exploit the variation in enforcement measures to analyze the effect on non-compliance. As an empirical strategy, they balance jobs from industries with stricter enforcement measures with jobs from other industries and apply difference-in-differences estimations. The evidence points to a small compliance-enhancing effect of the enforcement measures. The gains in compliance are not offset by more pronounced employment losses in those industries subject to stricter enforcement.

scholarly journals The Employment Effect of Industry- Specific, Collectively Bargained Minimum Wages

2013 ◽  
Vol 14 (3) ◽  
pp. 258-281 ◽  
Author(s):  
Hanna Frings
Keyword(s):  
Unobserved Heterogeneity ◽  
Minimum Wages ◽  
Employment Effect ◽  
Substitution Effects ◽  
Control Group ◽  
Construction Sector ◽  
Difference In Differences ◽  
Control Group Design ◽  
Group Design ◽  
Exogenous Control

Abstract This study estimates the employment effects of industry-specific, collectively bargained minimum wages in Germany for two occupations associated with the construction sector. I propose a truly exogenous control group in contrast to the control group design used in the literature. Further, a difference-in-differences-in-differences estimator is presented as a robustness test for occupation-specific and/or industry-specific, time-varying, unobserved heterogeneity. I do not find a significantly negative employment effect, even though the minimum wage is binding in (East) Germany. Possible explanations include substitution effects, non-compliance and models of monopsonic competition.

scholarly journals Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks

2014 ◽  
Vol 6 (2) ◽  
pp. 49-75 ◽  
Author(s):  
David McKenzie ◽  
Caroline Theoharides ◽  
Dean Yang
Keyword(s):  
Labor Market ◽  
Business Cycles ◽  
International Migration ◽  
The Philippines ◽  
Minimum Wages ◽  
Migrant Labor ◽  
Economic Shocks ◽  
Global Business ◽  
Difference In Differences ◽  
Wage Change

We use an original panel dataset of migrant departures from the Philippines to identify the responsiveness of migrant numbers and wages to GDP shocks in destination countries. We find a large, significant response of migrant numbers to GDP shocks at destination, but no significant wage response. This is consistent with binding minimum wages for migrant labor. This result implies that labor market imperfections that make international migration attractive also make migrant flows more sensitive to global business cycles. Difference-in-differences analysis of a minimum wage change for maids confirms that minimum wages bind and demand is price sensitive without these distortions. (JEL F22, J31, J38, J61, O15)

scholarly journals Minimum Wages and Firm Profitability

2011 ◽  
Vol 3 (1) ◽  
pp. 129-151 ◽  
Author(s):  
Mirko Draca ◽  
Stephen Machin ◽  
John Van Reenen
Keyword(s):  
Simple Model ◽  
Market Power ◽  
Minimum Wage ◽  
Minimum Wages ◽  
Difference In Differences ◽  
Suggestive Evidence ◽  
Firm Profitability ◽  
Policy Information ◽  
The Impact

We study the impact of minimum wages on firm profitability, exploiting the changes induced by the introduction of a UK national minimum wage in 1999. We use pre-policy information on the distribution of wages to implement a difference-in-differences approach. Minimum wages raise wages, but also significantly reduce profitability (especially in industries with relatively high market power). This is consistent with a simple model where wage gains from minimum wages map directly into profit reductions. There is some suggestive evidence of longer run adjustment to the minimum wage through falls in net entry rates. (JEL J31, J38, L25)

Re-Evaluating the Costs of Teenage Childbearing, 1988-1991

1991 ◽  
Author(s):  
Saul D. Hoffman ◽  
◽  
E. Michael Foster ◽  
Frank F. Furstenberg
Keyword(s):  
Teenage Childbearing
Sign in / Sign up

Export Citation Format

Share Document