Lordan, Grace and Neumark, David (2018) People versus machines: the impact of minimum wages on automatable. Discussion Paper Series (11297). IZA (Forschungsinstitut zur Zukunft der Arbeit), Bonn, Germany.
Full text not available from this repository.Abstract
We study the effect of minimum wage increases on employment in automatable jobs – jobs in which employers may find it easier to substitute machines for people – focusing on low-skilled workers from whom such substitution may be spurred by minimum wage increases. Based on CPS data from 1980-2015, we find that increasing the minimum wage decreases significantly the share of automatable employment held by low-skilled workers, and increases the likelihood that low-skilled workers in automatable jobs become unemployed. The average effects mask significant heterogeneity by industry and demographic group, including substantive adverse effects for older, low-skilled workers in manufacturing. The findings imply that groups often ignored in the minimum wage literature are in fact quite vulnerable to employment changes and job loss because of automation following a minimum wage increase.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | https://www.iza.org/ |
| Additional Information: | © 2018 The Authors |
| Divisions: | Social Policy Centre for Economic Performance LSE Health |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J38 - Public Policy |
| Date Deposited: | 08 Mar 2018 14:36 |
| Last Modified: | 13 Sep 2024 20:40 |
| URI: | http://eprints.lse.ac.uk/id/eprint/87080 |
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