Economic Analysis of Recovery in States with Higher Minimum Wages than National Law

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
Merrick Marquie (Creator)
Appalachian State University (ASU )
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Abstract: I explore two groupings of states separated by whether or not their minimum wage is higher than the federal minimum wage to help better understand the potential effects of the minimum wage on employment. This piece looks directly at economic recovery in recession. Direct employment has been studied extensively but with mixed results, this piece takes a more macro viewpoint on the data from a labor sector standpoint and proposes other variables that could impact jobs. The data are analyzed through an OLS linear regression model for both combined and separated groups. The data show that the negative expected impact from the minimum wage on recovery is not supported and actually the opposite is statistically significant in the data set. More data need to be analyzed and added to better understand this complex issue. Nevertheless, the analysis provides an interesting discussion point related to the inherently complex issue of the minimum wage and implies that policymakers in states with higher than federally mandated minimum wages may not need to be as concerned about massive layoffs during recession and recovery years.

Additional Information

Honors Project
Marquie, M. (2015) Economic Analysis of Recovery in States with Higher Minimum Wages than National Law. Unpublished honors thesis. Appalachian State University, Boone, NC.
Language: English
Date: 2015

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