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An Evaluation of the Relationship Between Minimum Wage and Unemployment: Does the Local Cost-of-Living Matter?

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This article examines the relationship between federal, state and municipal minimum wage laws, local cost-of-living (COL) and the unemployment rate. It finds a strong statistically significant positive relationship between minimum wages and unemployment once COL is taken into account. Our results suggest that federal minimum wage policy is likely to have more harmful effects in rural/low cost areas.

Original languageAmerican English
JournalApplied Economics Letters
Volume25
DOIs
StatePublished - Jan 1 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Disciplines

  • Business
  • Economics

Keywords

  • Cost-of-living
  • Evaluation
  • Local
  • Minimum wage
  • Relationship
  • Unemployment

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