Replication data for: Minimum Wages and Firm Profitability
Principal Investigator(s): View help for Principal Investigator(s) Mirko Draca; Stephen Machin; John Van Reenen
Version: View help for Version V1
Name | File Type | Size | Last Modified |
---|---|---|---|
AEJ | 10/12/2019 03:20:PM | ||
LICENSE.txt | text/plain | 14.6 KB | 10/12/2019 11:20:AM |
Project Citation:
Draca, Mirko, Machin, Stephen, and Van Reenen, John. Replication data for: Minimum Wages and Firm Profitability. Nashville, TN: American Economic Association [publisher], 2011. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113772V1
Project Description
Summary:
View help for Summary
We study the impact of minimum wages on firm profitability, exploiting the changes induced by the introduction of a UK national minimum wage in 1999. We use pre-policy information on the distribution of wages to implement a difference-in-differences approach. Minimum wages raise wages, but also significantly reduce profitability (especially in industries with relatively high market power). This is consistent with a simple model where wage gains from minimum wages map directly into profit reductions. There is some suggestive evidence of longer run adjustment to the minimum wage through falls in net entry rates. (JEL J31, J38, L25)
Scope of Project
JEL Classification:
View help for JEL Classification
J31 Wage Level and Structure; Wage Differentials
J38 Wages, Compensation, and Labor Costs: Public Policy
L25 Firm Performance: Size, Diversification, and Scope
J31 Wage Level and Structure; Wage Differentials
J38 Wages, Compensation, and Labor Costs: Public Policy
L25 Firm Performance: Size, Diversification, and Scope
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.