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The Employment and Distributional Impacts of Nationwide Minimum Wage Changes

Author

Listed:
  • Giulia Giupponi
  • Robert Joyce
  • Attila Lindner
  • Tom Waters
  • Thomas Wernham
  • Xiaowei Xu

Abstract

We assess the impact of nationwide minimum wages on employment throughout the whole wage distribution by exploiting geographical variation in the level of wages. We find a substantial increase in wages at the bottom of the wage distribution, while we detect a small, statistically insignificant negative effect on employment. Combining the estimated change in the wage distribution with a tax and benefit microsimulation model, we show that the minimum wage generates considerable proportional income gains up to the middle of the household income distribution.

Suggested Citation

  • Giulia Giupponi & Robert Joyce & Attila Lindner & Tom Waters & Thomas Wernham & Xiaowei Xu, 2024. "The Employment and Distributional Impacts of Nationwide Minimum Wage Changes," Journal of Labor Economics, University of Chicago Press, vol. 42(S1), pages 293-333.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/728471
    DOI: 10.1086/728471
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    Cited by:

    1. Arindrajit Dube & Attila Lindner, 2024. "Minimum Wages in the 21st Century," RF Berlin - CReAM Discussion Paper Series 2524, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    2. Forth, John & Singleton, Carl & Bryson, Alex & Phan, Van & Ritchie, Felix & Whittard, Damian, 2024. "The Impact of a Rising Wage Floor on Labour Mobility across Firms," IZA Discussion Papers 17132, Institute of Labor Economics (IZA).
    3. Arindrajit Dube & Ben Zipperer, 2024. "Own-Wage Elasticity: Quantifying the Impact of Minimum Wages on Employment," NBER Working Papers 32925, National Bureau of Economic Research, Inc.
    4. Forth, John & Bryson, Alex & Phan, Van & Ritchie, Felix & Singleton, Carl & Stokes, Lucy & Whittard, Damian, 2024. "Revisiting Sample Bias in the UK's Annual Survey of Hours and Earnings, with Implications for Estimates of Low Pay and the Bite of the National Living Wage," IZA Discussion Papers 17291, Institute of Labor Economics (IZA).

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