蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Price Floors and Employer Preferences: Evidence from a Minimum Wage Experiment
蝌蚪网 Review
vol. 115,
no. 1, January 2025
(pp. 117–46)
Abstract
Firms posting job openings in an online labor market were randomly assigned minimum hourly wages. When facing a minimum wage, fewer firms hired, but those they did hire paid higher wages. Hours-worked fell substantially. Treated firms shifted to hiring more productive workers. Using the platform's imposition of a market-wide minimum wage after the experiment, I find that many of the experimental results also hold in equilibrium, including the substitution towards more productive workers. However, there was also a large reduction in the number of jobs posted for which the minimum wage would likely bind.Citation
Horton, John J. 2025. "Price Floors and Employer Preferences: Evidence from a Minimum Wage Experiment." 蝌蚪网 Review 115 (1): 117–46. DOI: 10.1257/aer.20170637Additional Materials
JEL Classification
- J22 Time Allocation and Labor Supply
- J23 Labor Demand
- J31 Wage Level and Structure; Wage Differentials
- J38 Wages, Compensation, and Labor Costs: Public Policy