We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Spillover Bias in Cross-Border Minimum Wage Studies: Evidence from a Gravity Model.
- Authors
Kuehn, Daniel
- Abstract
This paper explores the problem of spillover bias in cross-border studies of the minimum wage using a commuter gravity model on county-level data from 2009 to 2013. Commuter flows conform to the expectations of the gravity equation, but flows across county borders are sensitive to changes in the minimum wage rate, which implies that minimum wage employment effect estimates using contiguous counties are likely to suffer from spillover bias. One way to address this bias is to include a control ring between treatment and comparison counties, although this solution may introduce biases of its own. A gravity model that includes a control ring affirms that this alternative comparison group can address this spillover bias problem.
- Subjects
EXTERNALITIES; MINIMUM wage; LIVING wage movement; WAGE control; WAGE differentials
- Publication
Journal of Labor Research, 2016, Vol 37, Issue 4, p441
- ISSN
0195-3613
- Publication type
Article
- DOI
10.1007/s12122-016-9234-3