Journal of Labor Economics Vol. 42 No. S1 2024

The Employment and Distributional Impacts of Nationwide Minimum Wage Changes

Giulia Giupponi^1,2,3; Robert Joyce⁴; Attila Lindner⁵; Tom Waters⁶; Thomas Wernham⁶; Xiaowei Xu⁶

¹ Institute for Fiscal Studies · ² Centre for Economic Policy Research · ³ Bocconi University · ⁴ IFS · ⁵ University College London · ⁶ IFS and UCL

Abstract

We assess the impact of nationwide minimum wages on employment throughout the whole wage distribution by exploiting geographical variation in the level of wages. We find a substantial increase in wages at the bottom of the wage distribution, while we detect a small, statistically insignificant negative effect on employment. Combining the estimated change in the wage distribution with a tax and benefit microsimulation model, we show that the minimum wage generates considerable proportional income gains up to the middle of the household income distribution.

DOI

10.1086/728471

Volume

42

Issue

S1

Pages

S293-S333

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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