Minimum Wage and Time Spent Looking for Work
Abstract
To evaluate the effect of minimum wage increases, theoretical search-and-matching models of the labor market rely on supply side responses attributed to increased incentives. The current minimum wage literature lacks an empirical supply side study of the impact of minimum wage on search effort. We conduct difference-in-difference regressions and a dynamic analysis with event study plots to show a supply side response to elevated minimum wage. Using American Time Use Survey (ATUS) and Current Population Survey (CPS) data from 2003-2016, we find increases to minimum wage lead to large yet transitory spikes in the amount of time individuals spend looking for work particularly the unemployed and those who report searching.
Citation
Adams, Camilla G (2019). Minimum Wage and Time Spent Looking for Work. Undergraduate Research Scholars Program. Available electronically from https : / /hdl .handle .net /1969 .1 /188502.