The Impact of Minimum Wages on Unemployment Duration: Estimating the Effects Using the Displaced Worker Survey

Abstract

This paper examines the impact of minimum wages on unemployment duration. Our estimates suggest that higher minimum wages are associated with shorter unemployment duration for older males and those with at least a high school diploma, but longer unemployment spells for male high school dropouts and females who are older and in lower-skilled occupations. The results are consistent with other studies in generating concerns about the distributional impact of minimum wages.

Keywords: minimum wages, unemployment duration, displaced workers, labor-labor substitution

JEL Classification: J64, J38