The Effect of Minimum Wage Increased on Employment and Total Personal Income: County-Level Estimation from Restaurant and Retail Sector

Mingzhou Wang

doi:10.54254/2754-1169/73/20230566

Research Article

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Published on 19 April 2024

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Wang,M. (2024). The Effect of Minimum Wage Increased on Employment and Total Personal Income: County-Level Estimation from Restaurant and Retail Sector. Advances in Economics, Management and Political Sciences,73,307-318.

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The Effect of Minimum Wage Increased on Employment and Total Personal Income: County-Level Estimation from Restaurant and Retail Sector

Mingzhou Wang *^,1,

¹ College of Liberal Art, Auburn University, Auburn, 36849, United States

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/73/20230566

Abstract

This research examines the impact of minimum wage policies on employment and personal income in the United States, focusing on food preparation and service occupations and retail occupations. Using state-level and county-level data and employing econometric techniques such as difference-in-differences with continuous treatment and fixed effects, the study finds that moderate increases in the minimum wage do not significantly affect employment levels but lead to modest income effects. Moreover, minimum wage increases result in reduced usual hours worked per week, especially among individuals aged 14 to 21, with females in this age group experiencing a more pronounced effect. The findings highlight the complexity of minimum wage effects across different demographics and geographic regions and the importance of targeted policy considerations for specific demographic groups.

Keywords

Minimum Wage Effect, Difference-in-Differences, Fixed Effect, State Cluster, Demography

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References

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[5]. Congressional Budget Office. (2022). How Increasing the Federal Minimum Wage Could Affect Employment and Family Income.

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Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Conference website: https://2023.icftba.org/

ISBN：978-1-83558-319-7(Print) / 978-1-83558-320-3(Online)

Conference date: 8 November 2023

Editor：Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.73

ISSN：2754-1169(Print) / 2754-1177(Online)

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