A new paper in The Review of Economics and Statistics (US) has found “strong earnings effects” and “no employment effects” of minimum wage increases. In other words, increases in the minimum wage increased wages but did not reduce the number of  jobs.

The authors arrive at this conclusion by exploiting a number of natural experiments over the period 1990-2006. They compared counties that share borders but have increased their minimum wages at different times or by different amounts.

A very interesting paper.

Advertisements