Minimum Wage Laws and Job Search

Simple theoretical models of job search can imply that a higher minimum wage increases the number of job seekers for affected jobs. Researchers defending or explaining nonnegative estimated employment effects of minimum wages often appeal to these models, and sometimes claim that this is the most plausible prediction. We use novel data on job search in U.S. states to examine the effect of minimum wage increases on the number of job seekers for low-skilled positions. We find little if any evidence that higher minimum wages increase job search for low-skilled jobs, and more evidence that higher minimum wages decrease the number of workers seeking employment in these jobs.