Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading

Jeffrey Clemens, Lisa Kahn and Jonathan Meer

No 27090, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We explore whether minimum wage increases result in substitution from lower-skilled to slightly higher-skilled labor. Using 2011-2016 American Community Survey data (ACS), we show that workers employed in low-wage occupations are older and more likely to have a high school diploma following recent statutory minimum wage increases. To better understand the role of firms, we examine the Burning Glass vacancy data. We find increases in a high school diploma requirement following minimum wage hikes, consistent with our ACS evidence on stocks of employed workers. We see substantial adjustments to requirements both within and across firms.

JEL-codes: J23 J24 J3 J42 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-lma and nep-ure
Note: LS PE
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Citations: View citations in EconPapers (23)

Published as Jeffrey Clemens & Lisa B. Kahn & Jonathan Meer, 2021. "Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading," Journal of Labor Economics, vol 39(S1), pages S107-S149.

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Journal Article: Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading (2021)
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