Effects of the Minimum Wage on Employment of Young Adults with Cognitive Disabilities

We estimate the effects of increases in the minimum wage on labor market outcomes of working-age adults with cognitive disabilities, a vulnerable and low-skilled group, using data from the American Community Survey (2008-2023) and a generalized difference-in-differences research design. We found that a higher effective minimum wage reduces employment and labor force participation but has no effect on labor supply at the intensive margin for this group. Effects were stronger for those with lower educational attainment. We found no significant labor market effects of an increase in the minimum wage for individuals with physical disabilities or in the non-disabled population.