What are the spacial implications of minimum wages?

Sep 6, 2018

The key idea to estimate the causal effect of minimum wages on the distribution of wages, employment and regional migration is to exploit spatial heterogeneity in the share of workers that earn less than the statutory minimum prior to the introduction. Image: REUTERS/China Daily

Gabriel Ahlfeldt

Associate Professor of Urban Economics and Land Development, London School of Economics

Duncan Roth

Senior Researcher, Institute for Employment Research

Tobias Seidel

Professor of Economics, University of Duisberg-Essen

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Figure 1. Spatial distribution of the minimum wage bite.

Figure 2. Impact of the minimum wage bite on the wage distribution - at the 10th percentile

Figure 2. Impact of the minimum wage bite on the wage distribution - at the 50th percentile

Figure 2. Impact of the minimum wage bite on the wage distribution - at the 90th percentile

Figure 3. Impact of the minimum wage bite on employment.

Figure 4. Impact of the minimum wage bite on out-migration

Figure 4. Impact of the minimum wage bite on in-migration

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