Emma van Inwegen
Massachusetts Institute of Technology
Sloan School of Management
Cambridge, MA 02139
Institutional Affiliation: Massachusetts Institute of Technology
NBER Working Papers and Publications
|October 2018||Minimum Wage Increases and Individual Employment Trajectories|
with Ekaterina Jardim, Mark C. Long, Robert Plotnick, Jacob Vigdor, Hilary Wething: w25182
Using administrative employment data from the state of Washington, we use short-duration longitudinal panels to study the impact of Seattle’s minimum wage ordinance on individuals employed in low-wage jobs immediately before a wage increase. We draw counterfactual observations using nearest-neighbor matching and derive effect estimates by comparing the “treated” cohort to a placebo cohort drawn from earlier data. We attribute significant hourly wage increases and hours reductions to the policy. On net, the minimum wage increase from $9.47 to as much as $13 per hour raised earnings by an average of $8-$12 per week. The entirety of these gains accrued to workers with above-median experience at baseline; less-experienced workers saw no significant change to weekly pay. Approximately one-quar...
|June 2017||Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle|
with Ekaterina Jardim, Mark C. Long, Robert Plotnick, Jacob Vigdor, Hilary Wething: w23532
This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 in 2015 and to as much as $13 in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly wage rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by 6-7 percent, while hourly wages in such jobs increased by 3 percent. Consequently, total payroll for such jobs decreased, implying that the Ordinance lowered the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing e...