Absenteeism and Minimum Wages: Evidence from the CPS-MORG

33 Pages Posted: 25 Jun 2009  

Laura Bucila

affiliation not provided to SSRN

Curtis J. Simon

Clemson University

Date Written: June 18, 2009

Abstract

Some proponents of higher minimum wages cite reduced absenteeism as a positive side-effect. However, little evidence on the relationship between minimum wages and absenteeism exists for the United States. This paper examines the effect of minimum wages on absenteeism using data from the Merged Outgoing Rotation Groups of the Current Population Survey for the years 1979-2007 (CPS-MORG). We estimate a negative relationship between minimum wages and absenteeism for men, but a positive relationship for women. We consider three possible explanations for the positive estimated effects for women: selection, wage-constrained hedonic equilibrium, and differential costs of absenteeism. The evidence is inconsistent with the selection story, and most easily reconciled with the differential cost story.

Keywords: minimum wages, absenteeism

JEL Classification: J22, J32, J38

Suggested Citation

Bucila, Laura and Simon, Curtis J., Absenteeism and Minimum Wages: Evidence from the CPS-MORG (June 18, 2009). Available at SSRN: https://ssrn.com/abstract=1422575 or http://dx.doi.org/10.2139/ssrn.1422575

Laura Bucila

affiliation not provided to SSRN ( email )

Curtis J. Simon (Contact Author)

Clemson University ( email )

Clemson, SC 29634
United States
8646563966 (Phone)
8646564192 (Fax)

HOME PAGE: http://people.clemson.edu/~cjsmn/

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