2023-09-28 14:46:10 +00:00
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abstract: 'The earnings difference between white and black workers fell
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dramatically in the United States in the late 1960s and early 1970s.
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This article shows that the expansion of the minimum wage played a
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critical role in this decline. The 1966 Fair Labor Standards Act
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extended federal minimum wage coverage to agriculture, restaurants,
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nursing homes, and other services that were previously uncovered and
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where nearly a third of black workers were employed. We digitize over
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1,000 hourly wage distributions from Bureau of Labor Statistics industry
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wage reports and use CPS microdata to investigate the effects of this
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reform on wages, employment, and racial inequality. Using a
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cross-industry difference-in-differences design, we show that earnings
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rose sharply for workers in the newly covered industries. The impact was
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nearly twice as large for black workers as for white workers. Within
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treated industries, the racial gap adjusted for observables fell from 25
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log points prereform to 0 afterward. We can rule out significant
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disemployment effects for black workers. Using a bunching design, we
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find no aggregate effect of the reform on employment. The 1967 extension
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of the minimum wage can explain more than 20\% of the reduction in the
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racial earnings and income gap during the civil rights era. Our findings
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shed new light on the dynamics of labor market inequality in the United
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States and suggest that minimum wage policy can play a critical role in
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reducing racial economic disparities.'
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affiliation: 'Derenoncourt, E (Corresponding Author), Univ Calif Berkeley, Berkeley,
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CA 94720 USA.
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Derenoncourt, Ellora; Montialoux, Claire, Univ Calif Berkeley, Berkeley, CA 94720
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USA.'
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author: Derenoncourt, Ellora and Montialoux, Claire
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author_list:
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- family: Derenoncourt
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given: Ellora
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- family: Montialoux
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given: Claire
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da: '2023-09-28'
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doi: 10.1093/qje/qjaa031
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eissn: 1531-4650
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files: []
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issn: 0033-5533
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journal: QUARTERLY JOURNAL OF ECONOMICS
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keywords-plus: 'LABOR STANDARDS ACT; ECONOMIC-STATUS; MARKET; IMPACT; EARNINGS; GENDER;
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TRENDS; POLICY'
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language: English
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month: FEB
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number: '1'
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number-of-cited-references: '72'
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pages: 169-228
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papis_id: ebf0423b2c49aa10a266112c404f29e8
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ref: Derenoncourt2021minimumwages
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times-cited: '33'
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title: MINIMUM WAGES AND RACIAL INEQUALITY
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000612198000004
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usage-count-last-180-days: '12'
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usage-count-since-2013: '69'
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volume: '136'
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web-of-science-categories: Economics
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year: '2021'
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