Assessing the Employment Effects of State-Level Minimum Wage Increases in U.S. Low-Wage Industries, 2010–2018

The federal minimum wage in the United States has remained static since its last change in 2009. Due to stagnation at the federal level, states have moved to implement state-level wage increases to keep up with rising living costs and labor market conditions. This thesis investigates the short-run labor market effects of these increases in the United States from 2010 to 2018, focusing on low-wage industries. Through a staggered difference-in-differences (DiD) framework, the analysis shows how minimum wage hikes of at least $0.50 affected the employment-population ratio, labor force participation rate, and unemployment rate. This study adds to the growing literature suggesting that minimum wage increases during the 2010s had limited negative effects on employment outcomes.