Are Minimum Wage Effects Greater in Low‐Wage Areas?

Author(s): Godoey, Anna; Reich, Michael | Abstract: Empirical work on the minimum wage typically estimate effects averaged across high and low areas. Low labor markets could potentially be less able to absorb increases, in turn leading more negative employment effects. In this paper we examine counties, where relative ratios reach as .82, well beyond state-based extant studies. Using data from ACS, QWI QCEW, implement event study difference-in-difference methods, estimating average causal for all events our sample separately areas with lower higher impacts. We find positive effects, especially impact but do not detect adverse employment, weekly hours or annual weeks worked. among women, blacks and/or Hispanics. substantial declines household child poverty. These results inform policy debates about providing exemptions a $15 federal low-wage