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"More recently, some researchers (e.g. Dube et al. 2010) exploit differences between counties sitting on each side of a state border where one state raised thei
by crdoconnor 9y ago
"More recently, some researchers (e.g. Dube et al. 2010) exploit differences between counties sitting on each side of a state border where one state raised their minimum wage and another did not. Many, but certainly not all, studies that use these approaches deliver SMALL disemployment effects."
Daniel Aaronson, Eric French, Isaac Sorkin from your article ^^^
Dube et al 2010's ACTUAL result:
"We compare all contiguous county-pairs in the United States that straddle a state border and find NO adverse employment effects"
This a pathetic piece of weasel wording, although not something I'm terribly surprised to see from them specifically.
- trendia 9y agoThe paper itself is much more nuanced. Their model predicts the results of Dube, especially in industries where few of the employees receive salaries near min wage. It also predicts the minimal disemployment effects (or non-existent disemployment effects, as in Dube) in the short run. Where it differs is in the long-run in industries where 1) many employees receive near min wage, and 2) capital can easily replace labor. So, Aaronson finds disemployment in low cost / fast food restaurants in the long run, but not in expensive sit down restaurants (which can absorb additional labor costs).