People versus machines: the impact of minimum wages on automatable jobs
National Bureau of Economic Research, Cambridge ; Lordan, Grace ; Neumark, David
NBER - Cambridge, MA
2017
39 p.
automation ; level of qualification ; minimum wage ; wage increase
NBER Working Paper
23667
Wages and wage payment systems
https://ssrn.com/abstract=3018326
English
"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."
Digital
The ETUI is co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the ETUI.