Does Policy Advocacy Generate Good Pr?

Abstract

We develop a new dataset for analyzing linkages between news coverage, labor unions, and minimum wage increases. After validating our news coverage database, we demonstrate that events associated with minimum wage increases lead news coverage of organized labor to shift towards articles about minimum wages, and in particular to articles that reference high-profile interest groups. Through further analysis of the sentiment of articles about organized labor, we validate that, consistent with the minimum wage’s popularity with the public, this shift in news coverage is “good PR.” This public relations channel can thus rationalize why interest groups engage in policy advocacy.

Keywords: Political economy, social choice, minimum wage, unionization JEL Classifications: D71, D78, P16