The Minimum Wage and Search Effort

47 Pages Posted: 8 Oct 2018 Last revised: 27 Feb 2023

See all articles by Camilla Adams

Camilla Adams

Texas A&M University

Jonathan Meer

Texas A&M University - Department of Economics

CarlyWill Sloan

Texas A&M University

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

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

Camilla Adams (Contact Author)

Texas A&M University

7101 University Avenue
STEM 318 H
Texarkana, TX 75503
United States

Jonathan Meer

Texas A&M University - Department of Economics ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

CarlyWill Sloan

Texas A&M University ( email )

Langford Building A
798 Ross St.
College Station, TX 77843-3137
United States

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