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Title: State minimum wages and business location: Evidence from a refined border approach

Citation Type: Journal Article

Publication Year: 2011

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Abstract: This study examines the effect of state minimum wage changes on new and existing business establishments. It employs a refined border approach in conjunction with other differencing methods to control for unobserved heterogeneous area characteristics. The findings suggest that state minimum wage increases deter new establishments from locating in an area, particularly in industries that rely on low-education workforces, such as the retail and manufacturing industries. However, existing establishments,regardless of industry type, are not found to be adversely affected by minimum wage policy.

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Authors: Rohlin, Shawn M.

Periodical (Full): Journal of Urban Economics

Issue: 1

Volume: 69

Pages: 103-117

Data Collections: IPUMS USA

Topics: Other

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