The Minimum Wage and Search Effort
47 Pages Posted: 8 Oct 2018 Last revised: 27 Feb 2023
Date Written: October 2018
Abstract
Labor market search-and-matching models posit supply-side responses to minimum wage increases that may lead to improved matches and lessen or even reverse negative employment effects. Yet there is sparse empirical evidence on this crucial assumption. Using event study analysis of recent minimum wage increases, we find that these changes do not affect the likelihood of searching, but do lead to large yet very transitory spikes in search effort by individuals already looking for work. These results are not driven by changes in the composition of searchers.
Suggested Citation: Suggested Citation
Adams, Camilla and Meer, Jonathan and Sloan, CarlyWill, The Minimum Wage and Search Effort (October 2018). NBER Working Paper No. w25128, Available at SSRN: https://ssrn.com/abstract=3262391
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