Channels of Adjustment in Labor Markets: the 20072009 Federal Minimum Wage Increase in the United States,Used

Channels of Adjustment in Labor Markets: the 20072009 Federal Minimum Wage Increase in the United States,Used

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This goal of this dissertation is to explore a number of adjustment channels that can explain the paradox of the small and insignificant employment effects uncovered in the minimum wage literature. Specifically, the economic impact of the most recent 20072009 Federal minimum wage increase (from $5.15 to $7.25 an hour) is analyzed using a sample of quickservice restaurants in Georgia and Alabama. In contrast to prior studies, storelevel biweekly payroll records for individual employees are used, allowing greater precision in measuring the relative costimpact of the MW on establishments. Despite significant variation in the costimpact of the threestage MW increase across establishments, regression analysis finds lack of a negative effect on employment and hours following each MW increase. Additional channels of adjustment are explored using unique data from manager surveys. Evidence suggests that higher product prices, lower profit margins, wage compression, reduced turnover and higher performance standards largely account for insignificant employment effects.

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We provide a 2-year limited warranty, from the date of purchase for all our products.

If you believe you have received a defective product, or are experiencing any problems with your product, please contact us.

This warranty strictly does not cover damages that arose from negligence, misuse, wear and tear, or not in accordance with product instructions (dropping the product, etc.).

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