English, Article, Journal or magazine article edition: The Effect of Minimum Wages on Labor Market Outcomes: County-Level Estimates from the Restaurant-and-Bar Sector John T. Addison; McKinley L. Blackburn; Chad D. Cotti

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Bookmark: http://trove.nla.gov.au/version/145276
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Effect of Minimum Wages on Labor Market Outcomes: County-Level Estimates from the Restaurant-and-Bar Sector
Author
  • John T. Addison
  • McKinley L. Blackburn
  • Chad D. Cotti
Physical Description
  • preprint
Notes
  • We use county-level data on employment and earnings in the restaurant-and-bar sector to evaluate the impact of minimum wage changes on low-wage labor markets. Our empirical approach is similar to the literature that has used state-level panel data to estimate minimum-wage impacts, with the difference that we focus on a particular sector rather than demographic group. Our estimated models are consistent with a simple competitive model of the restaurant-and-bar labor market in which supply-and-demand factors affect both the equilibrium outcome and the probability that a minimum wage will be binding in any given time period. Our evidence does not suggest that minimum wages reduce employment in the overall restaurant-and-bar sector, after controls for trends in sector employment at the county level are incorporated in the model. Employment in this sector appears to exhibit a downward long-term trend in states that have increased their minimum wages relative to states that have not, thereby predisposing fixed-effects estimates towards finding negative employment effects.
  • RePEc:rim:rimwps:02-08
Language
  • English
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