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Title: Do Increases in State Minimum Wages Accelerate Technology Adoption?

Citation Type: Working Paper

Publication Year: 2019

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ISSN: 1556-5068

DOI: 10.2139/ssrn.3451663

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Abstract: This paper studies the effects of state minimum wage increases on establishment-level information technology (IT) investment. We find that establishments in states experiencing significant minimum wage increases allocate $28,000 more to their IT budgets. The effects are heterogeneous across establishment or state characteristics. Further evidence also suggests that state minimum wage increases lead to a lower employment growth rate at the establishment level. Our results suggest that establishments automate low-wage jobs as a response to an increase in the wage floor.

Url: https://www.ssrn.com/abstract=3451663

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Authors: Qiu, Yue; Dai, Xin

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Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

Countries: United States