Daniel Haanwinckel
arXiv 3 Jul 2023 · Econometrics
arXiv:2307.01284 · PDF · Extracted main text
This paper evaluates the validity of estimators that exploit regional wage differences to study the effects of a national minimum wage. It shows that variations of the “fraction affected” and “effective minimum wage” designs are vulnerable to bias from measurement error and functional form misspecification, even when standard identification assumptions hold, and that small deviations from these assumptions can substantially amplify the biases. Using simulation exercises and a case study of Brazil's minimum wage increase, the paper illustrates the practical relevance of these issues and assesses the performance of potential solutions and diagnostic tools.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Brantly Callaway, Andrew Goodman-Bacon \ Pedro H. C. Sant'Anna (2024) Difference-in-Differences with a Continuous Treatment | 1.000 | 5 | 3 | 100% |
| 2 | Liyang Sun \ Jesse M. Shapiro (2022) A Linear Panel Model with Heterogeneous Coefficients and Variation in Exposure | 1.000 | 5 | 3 | 100% |
| 3 | David S Lee (1999) Wage Inequality in the United States during the 1980s: Rising Dispersion or Falling Minimum Wage? | 0.961 | 18 | 6 | 89% |
| 4 | Niklas Engbom \ Christian Moser (2022) Earnings Inequality and the Minimum Wage: Evidence from Brazil | 0.953 | 15 | 7 | 87% |
| 5 | Daniel Haanwinckel (2023) Supply, Demand, Institutions, and Firms: A Theory of Labor Market Sorting and the Wage Distribution self | 0.941 | 12 | 5 | 83% |
| 6 | David H. Autor, Alan Manning \ Christopher L. Smith (2016) The Contribution of the Minimum Wage to US Wage Inequality over Three Decades: A Reassessment | 0.935 | 11 | 5 | 82% |
| 7 | Ellora Derenoncourt, François Gérard, Lorenzo Lagos \ Claire Montial… (2021) Racial Inequality, Minimum Wage Spillovers, and the Informal Sector | 0.874 | 5 | 2 | 100% |
| 8 | Arindrajit Dube \ Attila Lindner (2024) Chapter 4 - Minimum wages in the 21st century | 0.874 | 5 | 2 | 100% |
| 9 | Paul Garcia Hinojosa (2019) The Role of the Minimum Wage on the Declining Wage Inequality in Latin America: Evidence from Brazil | 0.874 | 5 | 2 | 100% |
| 10 | Christian Dustmann, Attila Lindner, Uta Schönberg, Matthias Umkehrer… (2021) Reallocation Effects of the Minimum Wage* | 0.860 | 11 | 7 | 64% |
Showing the top 10 of 54 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Difference-in-Differences Estimators When No Unit Remains Untreated | 0.405 | 1 | 1 |