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The effects of a minimum wage on employment outcomes: an application of regression discontinuity design

Philippine Review of Economics

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Title The effects of a minimum wage on employment outcomes: an application of regression discontinuity design
 
Creator Canales, Kristine Laura; Texas A & M University
 
Subject minimum wage, regression discontinuity design, employment
 
Description In this paper, I ask whether a minimum wage increase results in adverse employment outcomes in terms of work hours and the probability of gaining or retaining employment. Regression discontinuity design (rdd) is employed on a household-level panel survey dataset, using the minimum wage as the forcing variable that determines whether a sample is assigned to either the treatment group (minimum wage worker) or the control group (above minimum wage worker). The rdd graphs and the regressions seem to point to a negative effect of a higher minimum wage on work hours, not only for workers earning the minimum wage but also for workers earning 50 percent more than the minimum wage. The probability of gaining/retaining employment is lower for minimum wage workers and for workers earning 50 percent above the minimum wage.JEL Classification: J31
 
Publisher Philippine Review of Economics
 
Contributor
 
Date 2014-12-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.econ.upd.edu.ph/pre/index.php/pre/article/view/912
 
Source Philippine Review of Economics; Vol 51, No 2 (2014); 97-120
1655-1516
 
Language eng
 
Relation http://www.econ.upd.edu.ph/pre/index.php/pre/article/view/912/812
 
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