NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by John Michael Ian S. Salas

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Working Papers

October 2014More on Recent Evidence on the Effects of Minimum Wages in the United States
with David Neumark, William Wascher: w20619
A central issue in estimating the employment effects of minimum wages is the appropriate comparison group for states (or other regions) that adopt or increase the minimum wage. In recent research, Dube et al. (2010) and Allegretto et al. (2011) argue that past U.S. research is flawed because it does not restrict comparison areas to those that are geographically proximate and fails to control for changes in low-skill labor markets that are correlated with minimum wage increases. They argue that using "local controls" establishes that higher minimum wages do not reduce employment of less-skilled workers. In Neumark et al. (2014), we present evidence that their methods fail to isolate more reliable identifying information and lead to incorrect conclusions. Moreover, for subsets of treatme...
January 2013Revisiting the Minimum Wage-Employment Debate: Throwing Out the Baby with the Bathwater?
with David Neumark, William Wascher: w18681
We revisit the minimum wage-employment debate, which is as old as the Department of Labor. In particular, we assess new studies claiming that the standard panel data approach used in much of the "new minimum wage research" is flawed because it fails to account for spatial heterogeneity. These new studies use research designs intended to control for this heterogeneity and conclude that minimum wages in the United States have not reduced employment. We explore the ability of these research designs to isolate reliable identifying information and test the untested assumptions in this new research about the construction of better control groups. Our evidence points to serious problems with these research designs. Moreover, new evidence based on methods that let the data identify the approp...

Published: David Neumark & J. M. Ian Salas & William Wascher, 2014. "Revisiting the Minimum Wage–Employment Debate: Throwing Out the Baby with the Bathwater?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 67(2.5), pages 608-648, May. citation courtesy of

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