Estimating the Economic Impacts of Living Wage Mandates Using Ex Ante Simulations, Longitudinal Estimates, and New Public and Administrative Data: Evidence for New York City

David Neumark, Matthew Thompson, Francesco Brindisi, Leslie Koyle, Clayton Reck

NBER Working Paper No. 18055
Issued in May 2012
NBER Program(s):   LS

Policy researchers often have to estimate the future effect of imposing a policy in a particular location. There is often historical information on the effects of similar policies in other jurisdictions, but no information on the effects of the policy in the jurisdiction in question, and the policy may have specific features not reflected in the experiences of other areas. It is then necessary to combine the historical evidence from other locations with information and data specific to the jurisdiction in question. In this paper, we illustrate and use this approach in estimating the impact of a proposed living wage mandate for New York City. We explain how we combined elements of "ex ante" evaluations of living wage laws with before-and-after (longitudinal) estimates of the effects of living wage laws. We also incorporate detailed location-specific information on workers, families, and employers using administrative data and other new public data sources.

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Document Object Identifier (DOI): 10.3386/w18055

Published: Neumark, David, Matthew Thompson, Francesco Brindisi, Leslie Koyle, and Clayton Reck, 2013, “Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data: Evidence for New York City,” Economic Development Quarterly, pp. 271-83.

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