Publications by Jesse Wursten
Small Businesses and the Minimum Wage
March 7, 2023 • Working Papers • By Jesse Wursten and Michael Reich
Abstract We provide the first causal analysis of the role of firm size on minimum wage effects in the U.S. Using a stacked event study estimator, we find that minimum…
Racial Inequality in Frictional Labor Markets
March 2, 2023 • Scholarly Publications • By Jesse Wursten and Michael Reich
Abstract We provide the first causal analysis of how state and federal minimum wage policies in the U.S. have affected labor market frictions and racial wage gaps. Using stacked…
Racial Inequality in Frictional Labor Markets: Evidence from Minimum Wages
March 2, 2023 • Working Papers • By Jesse Wursten and Michael Reich
Abstract We provide the first causal analysis of how state and federal minimum wage policies in the U.S. have affected labor market frictions and racial wage gaps. Using stacked event…
Parental Labor Supply: Evidence from Minimum Wage Changes
November 15, 2021 • Working Papers • By Anna Godoey, Michael Reich, Jesse Wursten and Sylvia A. Allegretto
Abstract We analyze effects of the minimum wage on the labor supply of parents of young children. Distributional difference-in-differences and event study models document a sharp rise in employment rates…
Racial Inequality and Minimum Wages in Frictional Labor Markets
January 26, 2021 • Working Papers • By Jesse Wursten and Michael Reich
Abstract We examine how the racial patchwork of federal and state minimum wage changes between 1990 and 2019 has affected racial wage gaps, with specific attention to effects on labor…
Parental Labor Supply: Evidence from Minimum Wage Changes
May 3, 2019 • Working Papers • By Anna Godoey, Michael Reich, Sylvia A. Allegretto and Jesse Wursten
Working Paper #103-19 [accordions] [accordion title="Abstract" load="hide"]Declining labor force participation rates among less-educated individuals in the U.S. have been attributed to various causes, including skill-biased technical change, demand shocks induced by international competition, looser eligibility requirements for disability insurance, the opioid epidemic and the nature of child care and family leave policies. In this paper, we examine how the labor supply of parents of dependent children respond to minimum wage changes. We implement an event study framework and document a sharp rise in employment and earnings of parents after state minimum wage increases. We further show that these effects are concentrated among jobs that pay the minimum wage or slightly higher – high wage employment remains unaffected. Panel models find corresponding drops in welfare receipts, moreover, for single mothers, effects are larger for mothers of preschool age children. The results are consistent with a simple labor supply model in which means-tested transfers and fixed costs of work in the form of paid childcare create barriers to labor market entry for parents of dependent children. Minimum wage increases then enable higher rates of parental labor force participation, resulting in significant reductions in child poverty. We find no evidence of employment crowd-out among non-parents, suggesting potential overall welfare gains from higher minimum wages. [/accordion] [/accordions]