Who Minimum Wage Increases Bite

Research Report

Who Minimum Wage Increases Bite

Results from the Current Population Survey and Survey of Income and Program Participation

Abstract

We use monthly data from the Survey of Income and Program Participation and the Current Population Survey to estimate the effect of the minimum wage. Minimum wage increases significantly reduce the employment of the most vulnerable groups in the working-age population--young adults without a high school degree (aged 20-24), young black adults and teenagers (aged 16-24), and teenagers (aged 16-19). While we also find that minimum wage increases significantly reduce the overall employment of young adults and teenagers, these more vulnerable subpopulations are even more adversely affected.

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