Download This PaperDoes Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers
56 Pages Posted: 17 Jun 2020 Last revised: 21 Sep 2022
Abstract
We examine worker effort as a potential margin of adjustment to a minimum wage hike using unique data on piece rate workers who perform a homogenous task and whose individual output is rigorously recorded. By employing a difference-in-differences strategy that exploits the increase in Florida's minimum wage from $6.79 to $7.21 on January 1, 2009, and worker location on the pre-2009 productivity distribution, we provide evidence consistent with incumbent workers' positive effort responses.
Keywords: labor productivity, labor productivity, effort, effort, incentive, minimum wage
JEL Classification: J20, J38, M50
Suggested Citation: Suggested Citation
Ku, Hyejin, Does Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers. IZA Discussion Paper No. 13369, Available at SSRN: https://ssrn.com/abstract=3628244
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