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Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading

Jeffrey Clemens¹; Lisa Kahn²; Jonathan Meer^3,4

¹ University of California San Diego · ² University of Rochester · ³ Mitchell Institute · ⁴ Texas A&M University

We explore whether minimum wage increases result in substitution from lower-skilled to slightly higher-skilled labor. Using 2011–16 American Community Survey (ACS) data, we show that workers employed in low-wage occupations are older and more likely to have a high school diploma following recent statutory minimum wage increases. To better understand the role of firms, we examine the Burning Glass vacancy data. We find increases in a high school diploma requirement following minimum wage hikes, consistent with our ACS evidence on stocks of employed workers. We see substantial adjustments to requirements both within and across firms.

DOI

10.1086/711490

Volume

39 (S1)

Pages

S107-S149

Language

en

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BibTeX

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