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Minimum Wage Laws and Job Search

Author

Listed:
  • Vitor C. Melo
  • Christopher Kaiser
  • David Neumark
  • Liya Palagashvili
  • Michael D. Farren

Abstract

A large theoretical literature on job search predicts that a higher minimum wage will increase the number of job seekers for affected jobs, which can lead to more job creation and higher employment. This paper uses novel data on job search in all U.S. states to examine the effect of minimum wage increases on the number of job seekers for low-skilled positions. We find no evidence that higher minimum wages increase job search for low-skilled jobs. Instead, the evidence suggests that higher minimum wages decrease the number of workers seeking employment.

Suggested Citation

  • Vitor C. Melo & Christopher Kaiser & David Neumark & Liya Palagashvili & Michael D. Farren, 2025. "Minimum Wage Laws and Job Search," NBER Working Papers 33433, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33433
    Note: LS PE
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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