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The minimum wage and search effort

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  • Adams, Camilla
  • Meer, Jonathan
  • Sloan, CarlyWill

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. 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 transitory spikes in search effort by individuals already looking for work. These results are not driven by changes in the composition of searchers, and are concentrated among the groups most likely to be impacted by the minimum wage and in response to larger minimum wage increases.

Suggested Citation

  • Adams, Camilla & Meer, Jonathan & Sloan, CarlyWill, 2022. "The minimum wage and search effort," Economics Letters, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolet:v:212:y:2022:i:c:s0165176522000106
    DOI: 10.1016/j.econlet.2022.110288
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    14. Jeffrey Clemens & Lisa B. Kahn & Jonathan Meer, 2021. "Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 107-149.
    15. Adams, Camilla & Meer, Jonathan & Sloan, CarlyWill, 2022. "The minimum wage and search effort," Economics Letters, Elsevier, vol. 212(C).
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    Citations

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    Cited by:

    1. Erik Hurst & Patrick J. Kehoe & Elena Pastorino & Thomas Winberry, 2022. "The Distributional Impact of the Minimum Wage in the Short and Long Run," NBER Working Papers 30294, National Bureau of Economic Research, Inc.
    2. Jeffrey Clemens & Michael Wither, 2024. "When is tinkering with safety net programs harmful to beneficiaries?," Southern Economic Journal, John Wiley & Sons, vol. 91(1), pages 213-256, July.
    3. Jeffrey Clemens & Lisa B. Kahn & Jonathan Meer, 2021. "Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 107-149.
    4. Adams, Camilla & Meer, Jonathan & Sloan, CarlyWill, 2022. "The minimum wage and search effort," Economics Letters, Elsevier, vol. 212(C).
    5. Arindrajit Dube & Attila Lindner, 2024. "Minimum Wages in the 21st Century," RF Berlin - CReAM Discussion Paper Series 2425, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    6. Clemens, Jeffrey, 2019. "Making Sense of the Minimum Wage: A Roadmap for Navigating Recent Research," MPRA Paper 94324, University Library of Munich, Germany.
    7. Meer, Jonathan, 2018. "Recent Research on the Minimum Wage: Implications for Missouri," MPRA Paper 93926, University Library of Munich, Germany.
    8. John Horton, 2021. "The Ruble Collapse in an Online Marketplace: Some Lessons for Market Designers," Papers 2104.06170, arXiv.org.
    9. Hampton, Matt & Totty, Evan, 2023. "Minimum wages, retirement timing, and labor supply," Journal of Public Economics, Elsevier, vol. 224(C).
    10. Doruk Cengiz & Arindrajit Dube & Attila S. Lindner & David Zentler-Munro, 2021. "Seeing Beyond the Trees: Using Machine Learning to Estimate the Impact of Minimum Wages on Labor Market Outcomes," NBER Working Papers 28399, National Bureau of Economic Research, Inc.
    11. Chibane, Messaoud & Kuhanathan, Ano, 2023. "Is the fed failing to re-anchor expectations? An analysis of jumps in inflation swaps," Finance Research Letters, Elsevier, vol. 55(PB).
    12. Regmi, Krishna, 2024. "Minimum wages and the uptake of Supplemental Security Income," Labour Economics, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Minimum wage; Time use; Job search;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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