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EMPLOYMENT EFFECTS OF TWO NORTHWEST MINIMUM WAGE INITIATIVES
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EMPLOYMENT EFFECTS OF TWO NORTHWEST MINIMUM WAGE INITIATIVES
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EMPLOYMENT EFFECTS OF TWO NORTHWEST MINIMUM WAGE INITIATIVES
EMPLOYMENT EFFECTS OF TWO NORTHWEST MINIMUM WAGE INITIATIVES
Journal Article

EMPLOYMENT EFFECTS OF TWO NORTHWEST MINIMUM WAGE INITIATIVES

2007
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Overview
This article exploits a natural experiment initiated by Oregon and Washington voter referendums to show that the minimum wage is a blunt instrument that differentially affects low‐wage workers within and across industries. Specifically, employment growth specifications indicate that the minimum wage generates consistently negative employment effects for eating and drinking workers where the minimum is shown to be relatively binding, but not for hotel and lodging workers where the minimum is less binding. Regressions using job‐specific want‐ad data from Portland and Seattle newspapers also indicate a reduction in hiring solicitation relating to the extent that the minimum wage binds. (JEL J31, J38)
Publisher
Blackwell Publishing Inc,Western Economic Association International,Blackwell Publishers Ltd,Western Economic Association