In these models, the individual event time indicators are replaced by a single indicator variable equal to one in the years prior to the minimum wage increase and one in the year of the first increase and subsequent years. [...] Consistent with the de- scription above, we observe a substantial dip in the number of jobs paying up to the new minimum wage, which is fully compensated by the increase in the number of higher- paying jobs. [...] The minimum wage affects employment immediately and the effects persist several years after the minimum wage increase.16 Moreover, the decline in jobs below the new minimum wage is approximately the same as the increase in the number of jobs paying above, consistent with the lack of an overall employment effect. [...] Finally, the own-wage employment elasticity is the ratio of the percentage change in affected employment (Row 4) divided by the percent increase in the averagewage (Row 6). [...] The net effect on the children will then depend on the quality of the parenting time and the quality of the children’s alternative care arrangements.
- Pages
- 27
- Published in
- United States of America
