Effects of state minimum wage increases on employment, hours, and earnings of low-wage workers in Illinois

In a 2003 study, we simulated the effects of a minimum wage increase in Illinois using payroll and population data, and predicted that the increase would not trigger widespread job loss. Data are now available to examine these effects empirically. Controlling for the demographics and economic changes of bordering states, as well as using Illinois before the minimum wage change as a control, we arrive at unexpected results given our prior simulations. Taken at face value, our estimates imply that the price elasticity of demand for low-wage workers in Illinois is high; in fact, much larger than current evidence suggests.


Issue Date:
2008
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/133004
Published in:
Journal of Regional Analysis and Policy, Volume 38, Issue 3
Page range:
268-278
Total Pages:
11




 Record created 2017-04-01, last modified 2017-04-28

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