The debate over minimum wage policy has raged for decades, with economists, policymakers, and business leaders offering sharply different predictions about its effects on employment. Critics warn that raising the minimum wage will force employers to cut jobs, while supporters argue that higher wages boost worker productivity and spending power. But what does the actual data tell us. Using a comprehensive difference-in-differences analysis and Federal Reserve Economic Data covering 43 U.S. states from 2012-2020 of the "Fight for $15" movement between 2012 and 2020, I provide some evidence about how minimum wage increases actually affect employment in the real world. The Perfect Natural Experiment The period from 2012 to 2020 provided economists with an ideal "natural experiment" to study minimum wage effects. Here's why this timeframe was perfect for analysis: Federal Stability : The federal minimum wage remained frozen at $7.25 per hour since 2009, creating ...
Economics, Data Science, Consulting