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Jerry Nickelsburg - One of the best experts on this subject based on the ideXlab platform.

  • who paid los angeles Minimum Wage a side by side Minimum Wage experiment in los angeles county
    Research Papers in Economics, 2021
    Co-Authors: Christopher Esposito, Edward E Leamer, Jerry Nickelsburg
    Abstract:

    In the restaurant industry, the incidence of an increase in the Minimum Wage may fall on restaurant owners, customers, landlords, and/or employees. We analyze the first two in this study, with implications for the incidence borne by landlords and employees. We exploit a geographical discontinuity in Los Angeles County, where in 2015 the City of Los Angeles passed a Minimum Wage Law and in 2016 the State of California passed a different Minimum Wage Law. This created two Minimum Wage schedules in the county that remained unequal for over five years. Using a novel data set from a multi-year price survey, our analysis shows that the incidence of Los Angeles City’s higher Minimum Wage fell on customers in high-income neighborhoods, and on landlords and restaurant owners in low-income neighborhoods. We further show that the mix of responses at restaurants subject to the LA City Minimum Wage, including price increases, menu changes, and restaurant closures, was affected by proximity to restaurants subject to the lower California State Minimum Wage. The effect of neighborhood income levels and distance to lower-Wage competition has important implications for designing Minimum Wage policies.

  • who paid los angeles Minimum Wage a side by side Minimum Wage experiment in los angeles county
    Social Science Research Network, 2021
    Co-Authors: Christopher Esposito, Edward E Leamer, Jerry Nickelsburg
    Abstract:

    In the restaurant industry, the incidence of an increase in the Minimum Wage may fall on restaurant owners, customers, landlords, and/or employees. We analyze the first two in this study, with implications for the incidence borne by landlords and employees. We exploit a geographical discontinuity in Los Angeles County, where in 2015 the City of Los Angeles passed a Minimum Wage Law and in 2016 the State of California passed a different Minimum Wage Law. This created two Minimum Wage schedules in the county that remained unequal for over five years. Using a novel data set from a multi-year price survey, our analysis shows that the incidence of Los Angeles City’s higher Minimum Wage fell on customers in high-income neighborhoods, and on landlords and restaurant owners in low-income neighborhoods. We further show that the mix of responses at restaurants subject to the LA City Minimum Wage, including price increases, menu changes, and restaurant closures, was affected by proximity to restaurants subject to the lower California State Minimum Wage. The effect of neighborhood income levels and distance to lower-Wage competition has important implications for designing Minimum Wage policies. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Edward E Leamer - One of the best experts on this subject based on the ideXlab platform.

  • who paid los angeles Minimum Wage a side by side Minimum Wage experiment in los angeles county
    Research Papers in Economics, 2021
    Co-Authors: Christopher Esposito, Edward E Leamer, Jerry Nickelsburg
    Abstract:

    In the restaurant industry, the incidence of an increase in the Minimum Wage may fall on restaurant owners, customers, landlords, and/or employees. We analyze the first two in this study, with implications for the incidence borne by landlords and employees. We exploit a geographical discontinuity in Los Angeles County, where in 2015 the City of Los Angeles passed a Minimum Wage Law and in 2016 the State of California passed a different Minimum Wage Law. This created two Minimum Wage schedules in the county that remained unequal for over five years. Using a novel data set from a multi-year price survey, our analysis shows that the incidence of Los Angeles City’s higher Minimum Wage fell on customers in high-income neighborhoods, and on landlords and restaurant owners in low-income neighborhoods. We further show that the mix of responses at restaurants subject to the LA City Minimum Wage, including price increases, menu changes, and restaurant closures, was affected by proximity to restaurants subject to the lower California State Minimum Wage. The effect of neighborhood income levels and distance to lower-Wage competition has important implications for designing Minimum Wage policies.

  • who paid los angeles Minimum Wage a side by side Minimum Wage experiment in los angeles county
    Social Science Research Network, 2021
    Co-Authors: Christopher Esposito, Edward E Leamer, Jerry Nickelsburg
    Abstract:

    In the restaurant industry, the incidence of an increase in the Minimum Wage may fall on restaurant owners, customers, landlords, and/or employees. We analyze the first two in this study, with implications for the incidence borne by landlords and employees. We exploit a geographical discontinuity in Los Angeles County, where in 2015 the City of Los Angeles passed a Minimum Wage Law and in 2016 the State of California passed a different Minimum Wage Law. This created two Minimum Wage schedules in the county that remained unequal for over five years. Using a novel data set from a multi-year price survey, our analysis shows that the incidence of Los Angeles City’s higher Minimum Wage fell on customers in high-income neighborhoods, and on landlords and restaurant owners in low-income neighborhoods. We further show that the mix of responses at restaurants subject to the LA City Minimum Wage, including price increases, menu changes, and restaurant closures, was affected by proximity to restaurants subject to the lower California State Minimum Wage. The effect of neighborhood income levels and distance to lower-Wage competition has important implications for designing Minimum Wage policies. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Kaushik Basu - One of the best experts on this subject based on the ideXlab platform.

  • a theory of efficiency Wage with multiple unemployment equilibria how a higher Minimum Wage Law can curb unemployment
    Oxford Economic Papers, 2009
    Co-Authors: Kaushik Basu, Amanda J Felkey
    Abstract:

    This paper uses efficiency Wage theory and the existence of community-based sharing to hypothesize that labor markets in developing countries have multiple equilibria – the same economy can be stuck at different levels of unemployment with different levels of Wages. The model is meant for developing economies where Wage-productivity links are discernible and income-sharing among the poor is prevalent. It seems reasonable to posit that in such an economy more unemployment leads to more income sharing. The main results are generated combining this claim with a theoretical demonstration of the fact that more sharing increases unemployment rates. As corollaries, we show that (1) within the same society, two different racial groups that may be ex ante identical can have different levels of unemployment and Wages in equilibrium and (2) the imposition of a legal Minimum Wage can raise employment.

  • the intriguing relation between adult Minimum Wage and child labor
    The Economic Journal, 1999
    Co-Authors: Kaushik Basu
    Abstract:

    Because most parents send their children to work when compelled by poverty, one would expect a rise in adult Wage to lower child labor. However, if the rise in Wage is achieved by a Minimum Wage Law, its impact can be intriguing. It can, for instance, cause some adults to be unemployed, and send their children to work, which in turn displaces more adult labor, and sends more children to work. The paper solves this process, and predicts the incidence of child labor. It shows that, for appropriate parametric configurations, child labor may fall, or rise as the adult Minimum Wage is raised.

  • household labor supply unemployment and Minimum Wage legislation
    1999
    Co-Authors: Kaushik Basu, Joseph E Stiglitz, Garance Genicot
    Abstract:

    The supply behavior of labor often depends on the demand conditions prevailing in the labor market. If demand is inadequate, households may send additional household members, who otherwise would not have worked, to look for work, for fear the main income earner may lose his job. The authors study the theoretical consequences of this"added worker"effect. They show that it can rise to multiple equilibria in the labor market. Surprisingly, a Minimum Wage Law set below the prevailing market Wage can cause the market Wage to fall and unemployment to rise. Unemployment benefits, by countering some of the risks of unemployment, can neutralize the inefficiencies caused by households'tendency to oversupply labor.

Christopher Esposito - One of the best experts on this subject based on the ideXlab platform.

  • who paid los angeles Minimum Wage a side by side Minimum Wage experiment in los angeles county
    Research Papers in Economics, 2021
    Co-Authors: Christopher Esposito, Edward E Leamer, Jerry Nickelsburg
    Abstract:

    In the restaurant industry, the incidence of an increase in the Minimum Wage may fall on restaurant owners, customers, landlords, and/or employees. We analyze the first two in this study, with implications for the incidence borne by landlords and employees. We exploit a geographical discontinuity in Los Angeles County, where in 2015 the City of Los Angeles passed a Minimum Wage Law and in 2016 the State of California passed a different Minimum Wage Law. This created two Minimum Wage schedules in the county that remained unequal for over five years. Using a novel data set from a multi-year price survey, our analysis shows that the incidence of Los Angeles City’s higher Minimum Wage fell on customers in high-income neighborhoods, and on landlords and restaurant owners in low-income neighborhoods. We further show that the mix of responses at restaurants subject to the LA City Minimum Wage, including price increases, menu changes, and restaurant closures, was affected by proximity to restaurants subject to the lower California State Minimum Wage. The effect of neighborhood income levels and distance to lower-Wage competition has important implications for designing Minimum Wage policies.

  • who paid los angeles Minimum Wage a side by side Minimum Wage experiment in los angeles county
    Social Science Research Network, 2021
    Co-Authors: Christopher Esposito, Edward E Leamer, Jerry Nickelsburg
    Abstract:

    In the restaurant industry, the incidence of an increase in the Minimum Wage may fall on restaurant owners, customers, landlords, and/or employees. We analyze the first two in this study, with implications for the incidence borne by landlords and employees. We exploit a geographical discontinuity in Los Angeles County, where in 2015 the City of Los Angeles passed a Minimum Wage Law and in 2016 the State of California passed a different Minimum Wage Law. This created two Minimum Wage schedules in the county that remained unequal for over five years. Using a novel data set from a multi-year price survey, our analysis shows that the incidence of Los Angeles City’s higher Minimum Wage fell on customers in high-income neighborhoods, and on landlords and restaurant owners in low-income neighborhoods. We further show that the mix of responses at restaurants subject to the LA City Minimum Wage, including price increases, menu changes, and restaurant closures, was affected by proximity to restaurants subject to the lower California State Minimum Wage. The effect of neighborhood income levels and distance to lower-Wage competition has important implications for designing Minimum Wage policies. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Ravi Kanbur - One of the best experts on this subject based on the ideXlab platform.

  • estimating the impact of Minimum Wages on employment Wages and non Wage benefits the case of agriculture in south africa
    American Journal of Agricultural Economics, 2014
    Co-Authors: Haroon Bhorat, Ravi Kanbur, Benjamin Stanwix
    Abstract:

    Assessments of the impact of Minimum Wages on labor market outcomes in Africa are relatively rare. In part this is because the available data do not permit adequate treatment of econometric issues that arise in such assessments. This paper, however, attempts to estimate the impact of introducing a Minimum Wage Law in the agriculture sector in South Africa, based on 15 waves of the biannual Labor Force Survey conducted between September 2000 and September 2007. The chosen sample includes six waves before the legislation's effective date (March 2003) and nine afterwards. To assess whether the changes experienced by farm workers are unique, we identify a control group that has similar characteristics to the treatment group. Our econometric approach involves using two alternative specifications of a difference-in-differences model. We test whether employers reduced employment, and whether they responded at the intensive margin by reducing hours of work. The results suggest a significant employment reduction in agriculture from the Minimum Wage (and particularly a noticeable move away from employment of part-time workers), an increase in Wages on average, and a rise in non-Wage benefits compliance. Our analysis also indicates that, firstly, overall average of hours worked fell in the post-Law period, suggesting that employers adjusted to some extent on the intensive margin. Secondly, it appears that hours of work increased more in areas where Wages were lower in the pre-Law period, driven largely by the fall in part-time employment.

  • estimating the impact of Minimum Wages on employment Wages and non Wage benefits the case of agriculture in south africa
    Social Science Research Network, 2012
    Co-Authors: Haroon Bhorat, Ravi Kanbur, Benjamin Stanwix
    Abstract:

    Assessments of the impact of Minimum Wages on labour market outcomes in Africa are relatively rare. In part this is because the data available do not permit adequate treatment of econometric issues that arise in such an assessment. This paper attempts to estimate the impact of the introduction of a Minimum Wage Law within the Agriculture sector in South Africa, based on 15 waves of the biannual Labour Force Survey (LFS), starting in September 2000 and ending in September 2007. The chosen sample includes six waves before the legislation's effective date (March 2003) and nine afterwards. All 15 waves are pooled and treated as repeated cross sections over time. In order to assess whether the changes experienced by farm workers are unique, we identify a control group that has similar characteristics to the treatment group. Our econometric approach involves using two alternative specifications of a difference-in-differences model. We test whether employers reduced employment, and whether they responded at the intensive margin by reducing hours of work. The Law also required non-Wage benefits to be implemented, and we track the response here in the form of one such provision, namely that of a written contract. The results suggest a significant reduction in employment in Agriculture from the Minimum Wage, an increase in Wages on average, no significant change in hours worked and a sharp rise in non-Wage compliance.

  • estimating the impact of Minimum Wages on employment Wages and non Wage benefits the case of agriculture in south africa
    Research Papers in Economics, 2012
    Co-Authors: Haroon Bhorat, Ravi Kanbur, Benjamin Stanwix
    Abstract:

    Assessments of the impact of Minimum Wages on labour market outcomes in Africa are relatively rare. In part this is because the data available do not permit adequate treatment of econometric issues that arise in such an assessment. This paper attempts to estimate the impact of the introduction of a Minimum Wage Law within the Agriculture sector in South Africa, based on 15 waves of the biannual Labour Force Survey (LFS), starting in September 2000 and ending in September 2007. The chosen sample includes six waves before the legislations effective date (March 2003) and nine afterwards. All 15 waves are pooled and treated as repeated cross sections over time. In order to assess whether the changes experienced by farm workers are unique, we identify a control group that has similar characteristics to the treatment group. Our econometric approach involves using two alternative specifications of a difference-in-differences model. We test whether employers reduced employment, and whether they responded at the intensive margin by reducing hours of work. The Law also required non-Wage benefits to be implemented, and we track the response here in the form of one such provision, namely that of a written contract. The results suggest a significant reduction in employment in Agriculture from the Minimum Wage, an increase in Wages on average, no significant change in hours worked and a sharp rise in non-Wage compliance. Acknowledgements: The research, from which this paper emanates, was funded by the International Development Research Centre (IDRC).