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The Economic Impact of a High National Minimum Wage: Evidence from the 1966 Fair Labor Standards Act

Journal of Labor Economics 2021 39(S2), S329-S367 open access
This paper examines the short and longer-term economic effects of the 1966 Fair Labor Standards Act (FLSA) which increased the national minimum wage to its highest level of the 20th Century and extended coverage to an additional 9.1 million workers. Exploiting differences in the "bite" of the minimum wage due to regional variation in the standard of living and industry composition, this paper finds that the 1966 FLSA increased wages dramatically but reduced aggregate employment only modestly. However, the disemployment effects were significantly larger among African-American men, forty percent of whom earned below the new minimum wage in 1966.

How Do Employers Use Compensation History? Evidence from a Field Experiment

Journal of Labor Economics 2021 39(1), 193-218 open access
We report the results of a field experiment in which treated employers could not observe the compensation history of their job applicants. Treated employers responded by evaluating more applicants and evaluating those applicants more intensively. They also responded by changing what kind of workers they evaluated: treated employers evaluated workers with 5% lower past average wages and hired workers with 13% lower past average wages. Conditional on bargaining, workers hired by treated employers struck better wage bargains for themselves.

School Segregation and Racial Gaps in Special Education Identification

Journal of Labor Economics 2021 39(S1), S151-S197
We use linked birth and education records from Florida to investigate how the identification of childhood disabilities varies by race and school racial composition. Using a series of decompositions, we find that black and Hispanic students are identified with disabilities at lower rates than are observationally similar white students. Black and Hispanic students are overidentified in schools with relatively small shares of minorities and substantially underidentified in schools with large minority shares. Our results are consistent with a heightened awareness among school officials of disabilities in students who are racially and ethnically distinct from the majority race in the school.