Puerto Rico's minimum wage: Revisiting a price floor with bite

Revisiting research from the 1990s from Castillo-Freeman and Krueger, I use the synthetic control method of Abadie et al. to estimate the impact of the most recent increase in the federal minimum wage on employment in Puerto Rico. I estimate that the employment/population ratio of various groups in...

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Autor principal:	Omberg Robert Tucker
Formato:	article
Lenguaje:	EN
Publicado:	Sciendo 2021
Materias:	minimum wage puerto rico synthetic controls j01 j08 j40 Labor policy. Labor and the state HD7795-8027
Acceso en línea:	https://doaj.org/article/206f54b8bd344c0cb831ba04ce4f7bed
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spelling	oai:doaj.org-article:206f54b8bd344c0cb831ba04ce4f7bed2021-12-05T14:11:08ZPuerto Rico's minimum wage: Revisiting a price floor with bite2193-900410.2478/izajolp-2021-0009https://doaj.org/article/206f54b8bd344c0cb831ba04ce4f7bed2021-11-01T00:00:00Zhttps://doi.org/10.2478/izajolp-2021-0009https://doaj.org/toc/2193-9004Revisiting research from the 1990s from Castillo-Freeman and Krueger, I use the synthetic control method of Abadie et al. to estimate the impact of the most recent increase in the federal minimum wage on employment in Puerto Rico. I estimate that the employment/population ratio of various groups in Puerto Rico was significantly lower than that of a data-constructed synthetic Puerto Rico which did not raise its minimum wage. Placebo tests on other donor units, time periods, and population groups suggest that a significant portion of this gap is a result of the minimum wage. Groups with greater exposure to the minimum wage, such as teens and restaurant workers, experienced proportionally greater declines in employment. My results suggest an own-wage elasticity of employment in Puerto Rico of −0.68, higher than estimates from the mainland, which suggests that the employment response to minimum wages may be more dramatic at higher relative minimum wages.Omberg Robert TuckerSciendoarticleminimum wagepuerto ricosynthetic controlsj01j08j40Labor policy. Labor and the stateHD7795-8027ENIZA Journal of Labor Policy, Vol 11, Iss 1, Pp 493-505 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	minimum wage puerto rico synthetic controls j01 j08 j40 Labor policy. Labor and the state HD7795-8027
spellingShingle	minimum wage puerto rico synthetic controls j01 j08 j40 Labor policy. Labor and the state HD7795-8027 Omberg Robert Tucker Puerto Rico's minimum wage: Revisiting a price floor with bite
description	Revisiting research from the 1990s from Castillo-Freeman and Krueger, I use the synthetic control method of Abadie et al. to estimate the impact of the most recent increase in the federal minimum wage on employment in Puerto Rico. I estimate that the employment/population ratio of various groups in Puerto Rico was significantly lower than that of a data-constructed synthetic Puerto Rico which did not raise its minimum wage. Placebo tests on other donor units, time periods, and population groups suggest that a significant portion of this gap is a result of the minimum wage. Groups with greater exposure to the minimum wage, such as teens and restaurant workers, experienced proportionally greater declines in employment. My results suggest an own-wage elasticity of employment in Puerto Rico of −0.68, higher than estimates from the mainland, which suggests that the employment response to minimum wages may be more dramatic at higher relative minimum wages.
format	article
author	Omberg Robert Tucker
author_facet	Omberg Robert Tucker
author_sort	Omberg Robert Tucker
title	Puerto Rico's minimum wage: Revisiting a price floor with bite
title_short	Puerto Rico's minimum wage: Revisiting a price floor with bite
title_full	Puerto Rico's minimum wage: Revisiting a price floor with bite
title_fullStr	Puerto Rico's minimum wage: Revisiting a price floor with bite
title_full_unstemmed	Puerto Rico's minimum wage: Revisiting a price floor with bite
title_sort	puerto rico's minimum wage: revisiting a price floor with bite
publisher	Sciendo
publishDate	2021
url	https://doaj.org/article/206f54b8bd344c0cb831ba04ce4f7bed
work_keys_str_mv	AT ombergroberttucker puertoricosminimumwagerevisitingapricefloorwithbite
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Puerto Rico's minimum wage: Revisiting a price floor with bite

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