The Minimum Wage and Search Effort
Labor market search-and-matching models posit supply-side responses to minimum wage increases that may lead to improved matches and lessen or even reverse negative employment eﬀects. Yet there is sparse empirical evidence on this crucial assumption. Using event study analysis of recent minimum wage increases, we ﬁnd that these changes do not aﬀect the likelihood of searching, but do lead to large yet very transitory spikes in search eﬀort by individuals already looking for work. These results are not driven by changes in the composition of searchers.
We are grateful for useful comments from Adam Bestenbostel, Jeﬀrey Clemens, Jennifer Doleac, Mark Duggan, Mark Hoekstra, Lisa Kahn, Jason Lindo, Abigail Peralta, Juan Carlos Suarez Serrato, Meradee Tangvatcharapong and Jeremy West. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Camilla Adams & Jonathan Meer & CarlyWill Sloan, 2022. "The minimum wage and search effort," Economics Letters, . citation courtesy of