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Variation in Job Creation and Destruction across the States Through Boom and Bust: Could Minimum Wage Matter?

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  • Suzanne H Clain

    (Department of Economics, Villanova School of Business, Villanova University, 800 Lancaster Avenue, Villanova, PA 19085, USA)

Abstract

This study explores variation in the employment growth of US states between 2003 and 2010, by investigating factors affecting rates of job creation, job destruction, and net job creation separately. It considers the role of minimum wage within a context controlling for variables commonly used in growth analyses. It contributes to the minimum wage literature by taking into account the endogeneity of minimum wage increases. It finds that larger increases in minimum wages lead to significantly lower rates of job creation the following year, all else unchanged. The effect on net job creation is not quite statistically significant, however.

Suggested Citation

  • Suzanne H Clain, 2015. "Variation in Job Creation and Destruction across the States Through Boom and Bust: Could Minimum Wage Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 41(2), pages 183-199, March.
    • Handle: RePEc:pal:easeco:v:41:y:2015:i:2:p:183-199
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