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Project Description

Summary:  View help for Summary
This is a replication package with data and code for the paper entitled "Employment Effects of Minimum Wage Indexing: Establishment Evidence from Oregon Restaurants."

Abstract
Even though eighteen states will index their minimum wage to the Consumer Price Index by 2025, few studies have examined indexing’s differential employment effects. Leveraging a period of stability in minimum wages (2000-2007) and two distinct national geocoded databases of establishments, we explore how indexing affected employment in Oregon restaurants, one of the earliest indexing states (2003). Nearest-neighbor matching is used as a preprocessing step before regression, pairing individual restaurants in Oregon to restaurants with similar characteristics in states where the minimum wage was unchanged. We find evidence that establishment employment falls 3.6\% after indexing, implying an employment elasticity of -0.18.


Scope of Project

JEL Classification:  View help for JEL Classification
      E31 Price Level; Inflation; Deflation
      J08 Labor Economics Policies
      J38 Wages, Compensation, and Labor Costs: Public Policy
Manuscript Number:  View help for Manuscript Number ECIN-Jun23-00248


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