Where Does the Minimum Wage Bite Hardest in California?

This study uses employment data on California county-industry pairs (CIPs) between 1990 and 2016 to test whether minimum wage increases caused employment growth to slow most in the CIPs with a large share of low wage workers. Evidence supports the hypothesis, and we use the estimates to simulate the...

Full description

Bibliographic Details
Main Authors: Even, W.E (Author), Macpherson, D.A (Author)
Format: Article
Language:English
Published: Springer Science and Business Media, LLC 2019
Subjects:
Online Access:View Fulltext in Publisher
LEADER 01705nam a2200193Ia 4500
001 10.1007-s12122-018-9281-z
008 220511s2019 CNT 000 0 und d
020 |a 01953613 (ISSN) 
245 1 0 |a Where Does the Minimum Wage Bite Hardest in California? 
260 0 |b Springer Science and Business Media, LLC  |c 2019 
856 |z View Fulltext in Publisher  |u https://doi.org/10.1007/s12122-018-9281-z 
520 3 |a This study uses employment data on California county-industry pairs (CIPs) between 1990 and 2016 to test whether minimum wage increases caused employment growth to slow most in the CIPs with a large share of low wage workers. Evidence supports the hypothesis, and we use the estimates to simulate the effect of a 10% increase in the minimum wage. The simulations suggest that a 10% increase could cause a 3.4% employment loss in the average CIP in California. The job loss is projected to be concentrated in two industries: accommodation and food services, and retail. While the most populated counties of California are expected to incur the largest employment loss in terms of the number of workers, the smaller counties generally experience a larger percentage point loss in employment due to the lower wages and the greater number of workers that would be affected by the minimum wage hike. Moreover, there is substantial variation across counties in terms of the percentage of jobs lost within a given industry. © 2018, Springer Science+Business Media, LLC, part of Springer Nature. 
650 0 4 |a California 
650 0 4 |a Employment 
650 0 4 |a Labor demand 
650 0 4 |a Minimum wage 
700 1 |a Even, W.E.  |e author 
700 1 |a Macpherson, D.A.  |e author 
773 |t Journal of Labor Research