Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties

Date Published: 
Fri, 01/01/2010

By Arindrajit Dube, T. William Lester and Michael Reich. Review of Economics and Statistics. 2010.

This study analyzes the impact of minimum wage laws on employment levels in both the counties with a higher minimum wage, and those of the surrounding lower wage counties. (It is also meant to iron out some long standing methodological disputes in the field of minimum wage studies.) “For cross-state contiguous counties, we find strong earnings effects and no employment effects of minimum wage increases”. They find that many of the studies showing negative effects of the minimum wage tend to ignore “regional and local differences in employment trends that are unrelated to minimum wage policies.