An Evaluation of the Relationship Between Minimum Wage and Unemployment: Does the Local Cost-of-Living Matter?
Document Type
Article
Publication Date
2018
Publication Title
Applied Economics Letters
DOI
10.1080/13504851.2017.1340562
ISSN
1466-4291
Abstract
This article examines the relationship between federal, state and municipal minimum wage laws, local cost-of-living (COL) and the unemployment rate. It finds a strong statistically significant positive relationship between minimum wages and unemployment once COL is taken into account. Our results suggest that federal minimum wage policy is likely to have more harmful effects in rural/low cost areas.
Recommended Citation
Brunt, Christopher S., Anthony G. Barilla.
2018.
"An Evaluation of the Relationship Between Minimum Wage and Unemployment: Does the Local Cost-of-Living Matter?."
Applied Economics Letters, 25 (7): 493-498: Taylor & Francis Online.
doi: 10.1080/13504851.2017.1340562
https://digitalcommons.georgiasouthern.edu/economics-facpubs/24
