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The Effect of Minimum Wage Policies on the Wage and Occupational Structure of Establishments

In: Wage Dynamics in the 21st Century

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  • Eliza Forsythe

Abstract

Using establishment-level panel data from the Occupational Employment and Wage Statistics program, I estimate the effect of minimum wage increases implemented by 10 states in 2014 and 2015. I show that minimum wage increases lead to wage spillovers within establishments. I find little evidence that minimum wage increases induce establishments to reorganize their occupational mix. Finally, I find that minimum wage increases propagate up the management hierarchy, leading to increased wages for supervisors. Nonetheless, I find that overall wage inequality decreases within establishments after minimum wage increases.
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Suggested Citation

  • Eliza Forsythe, 2021. "The Effect of Minimum Wage Policies on the Wage and Occupational Structure of Establishments," NBER Chapters, in: Wage Dynamics in the 21st Century, pages 291-324, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14928
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    Cited by:

    1. Abrahams, Scott, 2024. "Downward minimum wage rigidity: Evidence from a temporary four-month increase in St. Louis," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 30-47.

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