When Good Measurement Goes Wrong

New Evidence That New York State’s Minimum Wage Reduced Employment

Dados Bibliográficos

ID4573166
AutoresJoseph J Sabia (0000-0001-9319-5211, autor correspondente), Richard V Burkhauser (0000-0003-4629-0253), Brooke Hansen (0000-0001-9197-2718, Hudson Institute), Benjamin Hansen (Joseph J. Sabia is an Associate Professor in the Department of Economics at San Diego State University. Richard V. Burkhauser is a Professorial Research Fellow at the Melbourne Institute for Applied Economic & Social Research at the University of Melbourne and is the Sarah Gibson Blanding Professor of Policy Analysis at Cornell University. Benjamin Hansen is an Associate Professor of Economics at the University of Oregon)
Ano2016
Volume69
Fascículo2
Páginas312-319
Data de publicação2016-03-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoIndustrial and Labor Relations Review (JOURNAL)
Identificadores do periódicoISSN: 0019-7939 • E-ISSN: 2162-271X
EditoraSAGE Publications Inc (PUBLISHER)
DOI10.1177/0019793915610557
OpenAlexW2296701874
IdiomaEN
Citações recebidas5
Referências citadas11

Hoffman's (2015) replication of Sabia, Burkhauser, and Hansen (SBH 2012) suggests that "unlucky" measurement error in low-skilled employment in the Current Population Survey Outgoing Rotation Groups (CPS-ORG) led SBH to produce upwardly biased estimates of the labor demand effects of the 2005 to 2006 New York State minimum wage increase. This study replicates Hoffman's preferred policy estimates from the full CPS and finds evidence that the parallel trends assumption underlying his difference-in-difference approach is violated. When a synthetic control state with pretreatment employment trends similar to those in New York is constructed, this study estimates a relatively large negative employment elasticity with respect to the minimum wage for low-skilled individuals (-0.5), similar to the estimate SBH obtained using the CPS-ORG (-0.6

Current Population Survey · Demographic economics · Econometrics · Economics · Labour economics · Population · Replication (statistics) · Sociology · Statistics · Wage · Demography · Employment and Welfare Studies · Gender, Labor, and Family Dynamics · Mathematics · Urban, Neighborhood, and Segregation Studies