Effects of the Minimum Wage on the Nonprofit Sector

Jonathan Meer and Hedieh Tajali

No 31281, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The nonprofit sector’s ability to absorb increases in labor costs differs from the private sector in a number of ways. We analyze how nonprofits are affected by changes in the minimum wage utilizing data from the Bureau of Labor Statistics and the Internal Revenue Service, linked to state minimum wages. We examine changes in reported employment and volunteering, as well as other financial statements such as revenues and expenses. The results from both datasets show a negative impact on employment for states with large statutory minimum wage increases. We observe some evidence for a reduction in the number of nonprofit establishments, fundraising expenses, and revenues from contributions.

JEL-codes: H42 J3 J40 J48 (search for similar items in EconPapers)
Date: 2023-05
New Economics Papers: this item is included in nep-inv, nep-lma and nep-mfd
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Published as Jonathan Meer & Hedieh Tajali, 2023. "Effects of the minimum wage on the nonprofit sector," Oxford Economic Papers, vol 75(4), pages 1012-1032.

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