The Effect of Minimum Wage Increased on Employment and Total Personal Income: County-Level Estimation from Restaurant and Retail Sector

This research examines the impact of minimum wage policies on employment and personal income in the United States, focusing on food preparation and service occupations and retail occupations. Using state-level and county-level data and employing econometric techniques such as difference-in-differences with continuous treatment and fixed effects, the study finds that moderate increases in the minimum wage do not significantly affect employment levels but lead to modest income effects. Moreover, minimum wage increases result in reduced usual hours worked per week, especially among individuals aged 14 to 21, with females in this age group experiencing a more pronounced effect. The findings highlight the complexity of minimum wage effects across different demographics and geographic regions and the importance of targeted policy considerations for specific demographic groups.