A reassesment of minimum wage impacts with pooled synthetic control.


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I analyze state minimum wage increases with pooled synthetic control. State minimum wages are deferentially binding depending on the level of the federal minimum wage. These results are consistent with but more robust than those of ordinary least squares regression and the existing literature. My results are consistent across both unemployment and employment and are robust to variations in model specification. I find that the minimum wage increases unemployment by 0.86% four years after the minimum wage is raised in a state and this effect is similar in following years.



Synthetic Control, Minimum Wage