Does the employment effect of national minimum wage vary by non-employment rate? A regression discontinuity approach
Authors: Xu, L. and Zhu, Y.
Journal: Manchester School
Volume: 91
Issue: 1
Pages: 18-36
eISSN: 1467-9957
ISSN: 1463-6786
DOI: 10.1111/manc.12427
Abstract:We extend the Regression Discontinuity model to evaluate the procyclicality of employment effect of minimum wage and show that previous estimates may be biased due to failure to account for the local non-employment rate. The results suggest that the positive employment effect of increasing minimum wage is strongly procyclical, that is, is more pronounced in areas with low non-employment rates. Under an assumption that employers have no direct impact around the cut-off point, the results suggest that a higher minimum wage increases labour supply of young workers.
https://eprints.bournemouth.ac.uk/37726/
Source: Scopus
Does the employment effect of national minimum wage vary by non-employment rate? A regression discontinuity approach
Authors: Xu, L. and Zhu, Y.
Journal: MANCHESTER SCHOOL
Volume: 91
Issue: 1
Pages: 18-36
eISSN: 1467-9957
ISSN: 1463-6786
DOI: 10.1111/manc.12427
https://eprints.bournemouth.ac.uk/37726/
Source: Web of Science (Lite)
Does the employment effect of National Minimum Wage vary by non-employment rate? A Regression Discontinuity approach
Authors: Xu, L. and Zhu, Y.
Journal: The Manchester School
Publisher: Manchester University Press
ISSN: 1463-6786
Abstract:We examine the impact of increasing minimum wage on employment by exploiting variation in the age-dependent National Minimum Wage (NMW) in the UK. We extend the Regression Discontinuity model to evaluate the procyclicality of employment effect and show that previous estimates may be biased due to failure to account for the local non-employment rate. Contrary to the existing literature, we report a positive employment elasticity after accounting for the effect of local labour market conditions. The results suggest that the positive employment effect of increasing minimum wage is strongly procyclical, i.e. is more pronounced in areas with low non-employment rates. Under an assumption that employers have no direct impact around the cut-off point, the results suggest that a higher minimum wage increases labour supply of young workers.
https://eprints.bournemouth.ac.uk/37726/
Source: Manual
Does the employment effect of National Minimum Wage vary by non-employment rate? A Regression Discontinuity approach.
Authors: Xu, L. and Zhu, Y.
Journal: The Manchester School
Volume: 91
Issue: 1
Pages: 18-36
Publisher: Manchester University Press
ISSN: 1463-6786
Abstract:We examine the impact of increasing minimum wage on employment by exploiting variation in the age-dependent National Minimum Wage (NMW) in the UK. We extend the Regression Discontinuity model to evaluate the procyclicality of employment effect and show that previous estimates may be biased due to failure to account for the local non-employment rate. Contrary to the existing literature, we report a positive employment elasticity after accounting for the effect of local labour market conditions. The results suggest that the positive employment effect of increasing minimum wage is strongly procyclical, i.e. is more pronounced in areas with low non-employment rates. Under an assumption that employers have no direct impact around the cut-off point, the results suggest that a higher minimum wage increases labour supply of young workers.
https://eprints.bournemouth.ac.uk/37726/
Source: BURO EPrints