Association for Public Policy Analysis & Management

Panel: Social Equity and the Methodology of Assessing the Impacts of Minimum Wage Increases

(Social Equity)

A perennial social equity topic facing state and local governments is whether to raise the minimum wage. Eleven states have proposed or raised their minimum wages to $15.00 in the past year. Others are considering the consequences of proposed increases. This panel examines some of the methodological issues involved in meeting the requests from policy makers to assess the likely impacts of such increases. As states consider their own minimum wage, there is increasing demand for policy analysis that is capable of simulating the impact of higher wages on entire communities. Policy analysis is evolving beyond wage effects to address a range of policy questions. What impact will a higher minimum wage have on the employment? How does race and ethnicity influence research methodology? How can the impacts of a higher minimum wage be modeled at the state level? How does economic theory inform research methods? What kinds of unintended consequences should the analyst consider? In this panel, we will explore research on local changes in the minimum wage and discuss the modern techniques used to identify impacted communities, and simulate the ripple effects of changes in the minimum wage on prices, on employment, and on household stability.