Examining the Employment Effect of Minimum Wage Increase for Major Race and Ethnicity Groups

Date of Award

2019

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Economics

First Advisor

Monica Das

Abstract

This study examines how minimum wage increase affect the employment for different race and ethnicity group using a fixed-effect model. By using the ACS 1-year estimates data from 2009 to 2017 and the independent variable that captures the Minimum wage change for all states and the District of Columbia for the same period of time, I am able to find the overall minimum wage effect on employment as well as the effect for individuals from different race and ethnicity groups across the entire country. The primary result indicates there is no significant minimum wage effect on employment for my sample between 2009 and 2017. However, when focusing on each major race and ethnicity groups, I find there are significant and negative minimum wage effects on employment for Blacks or African Americans and Hispanics or Latinos.

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