Attila S. Lindner
Department of Economics
University College London
30 Gordon Street
Institutional Affiliations: University College London and CERS-HAS, IZA and IFS
NBER Working Papers and Publications
|January 2019||The Effect of Minimum Wages on Low-Wage Jobs: Evidence from the United States Using a Bunching Estimator|
with Doruk Cengiz, Arindrajit Dube, Ben Zipperer: w25434
We propose a novel method that infers the employment effect of a minimum wage increase by comparing the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it. To implement our approach, we estimate the effect of the minimum wage on the frequency distribution of hourly wages using 138 prominent state-level minimum wage changes between 1979 and 2016. We find that the overall number of low-wage jobs remained essentially unchanged over five years following the increase. At the same time, the direct effect of the minimum wage on average earnings was amplified by modest wage spillovers at the bottom of the wage distribution. Our estimates by detailed demographic groups show that the lack of job loss is not explained by labor-labor substitution...
|May 2016||Reference-Dependent Job Search: Evidence from Hungary|
with Stefano DellaVigna, Balázs Reizer, Johannes F. Schmieder: w22257
We propose a model of job search with reference-dependent preferences, where the reference point is given by recent income. Newly unemployed individuals search hard given that they are at a loss, but over time they get used to lower income, and thus reduce their search effort. In anticipation of a benefit cut their search effort rises again, then declines once they get used to the lower benefit level. The model fits the typical pattern of the exit from unemployment, even with no unobserved heterogeneity. The model also makes distinguishing predictions regarding the response to benefit changes, which we evaluate using a unique reform. In 2005, Hungary switched from a single-step UI system to a two-step system, with unchanged overall generosity. The system generated increased hazard rates in...
Published: Stefano DellaVigna & Attila Lindner & Balázs Reizer & Johannes F. Schmieder, 2017. "Reference-Dependent Job Search: Evidence from Hungary*," The Quarterly Journal of Economics, vol 132(4), pages 1969-2018. citation courtesy of