Do Minimum Wages Really Reduce Teen Employment? Accounting for Geterogeneity and Selectivity in State Panel Data

Sylvia A. Allegretto, Arindrajit Dube, and Michael Reich. National Employment Law Project. March, 2011.

This study shows that many minimum wage studies account for economic variations among states, but fail to control for local variables, like long term differences in growth and regional or local economic shocks. Analysis that takes such disparities into account “rules out any but very small disemployment effects.”