The Local Aggregate Effects of Minimum Wage Increases
Name
Cooper_Luengo-Prado_Parker_2019_JN_Local-Aggregate.pdf
Description
Submitted version
Size
691.12 KB
Format
Adobe PDF
Checksum (MD5)
02937e1e145fddd2bb4085060e1634de
Author(s)
COOPER, DANIEL
LUENGO-PRADO, MARÍA JOSÉ
PARKER, JONATHAN A
Date Issued
2020
Journal
Journal of Money, Credit and Banking
Publisher
Wiley
Version
Original manuscript
Abstract
© 2019 The Ohio State University Using variation in minimum wages across cities and controlling for differences in business-cycle factors and long-run local economic trends, we find that following minimum wage increases, both, prices and nominal spending rise modestly. These gains are larger for certain subcategories of goods such as food away from home and in locations where low-wage workers account for a larger share of employment. Further, minimum wage increases are associated with reduced total debt among households with low credit scores, higher auto debt, and increased access to credit.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1111/jmcb.12684
