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Do minimum wages raise employment? Evidence from the U.S. retail-trade sector

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  • Addison, John T.
  • Blackburn, McKinley L.
  • Cotti, Chad D.

Abstract

This paper examines the impact of minimum wages on earnings and employment in selected branches of the retail-trade sector, 1990-2005, using county-level data on employment and a panel regression framework that allows for county-specific trends in sectoral outcomes. We focus on specific subsectors within retail trade that are identified as particularly low-wage. We find little evidence of disemployment effects once we allow for geographic-specific trends. Indeed, in many sectors the evidence points to modest (but robust) positive employment effects.

Suggested Citation

  • Addison, John T. & Blackburn, McKinley L. & Cotti, Chad D., 2009. "Do minimum wages raise employment? Evidence from the U.S. retail-trade sector," Labour Economics, Elsevier, vol. 16(4), pages 397-408, August.
    • Handle: RePEc:eee:labeco:v:16:y:2009:i:4:p:397-408
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    References listed on IDEAS

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