Minimum Wage Impacts from a Prespecified Research Design: Canada 1981-1997
22 Pages Posted: 8 May 2006
Neumark (2001) used the novel methodology of a prespecified research design to estimate the employment effect of minimum wage changes. We conducted our analysis in the spirit of this methodology based on Canadian data from 1981 to 1997. Our minimum wage elasticities are substantial, typically in the range of -0.14 to -0.44, with -0.30 being a reasonable point estimate, and with the effects being larger after lagged adjustments.
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