Stewart, Mark B. (2011) Quantile estimates of counterfactual distribution shifts and the impact of minimum wage increases on the wage distribution. Working Paper. Coventry: University of Warwick. Dept. of Economics. (Warwick economics research paper series (TWERPS), Vol.2011).

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Abstract

This paper presents a method for estimating the effects of a policy change on an outcome distribution that uses a comparator quantile rather than a control group and provides methods for estimating the variances of the estimators. The empirical analysis presents estimates of "spillover" effects of increases in the UK minimum wage, i.e. effects on the wages of those already above the minimum, under different counterfactual distribution shift assumptions. Evidence is presented against a simple scaled counterfactual. On the basis of the proposed counterfactual estimated spillover effects are small and in most cases do not reach above the 5th. percentile.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Estimation theory, Economic policy, Minimum wage -- Great Britain -- Econometric models
Series Name:	Warwick economics research paper series (TWERPS)
Publisher:	University of Warwick. Dept. of Economics
Place of Publication:	Coventry
Date:	2011
Volume:	Vol.2011
Number:	No.958
Status:	Not Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access
Funder:	Economic and Social Research Council (Great Britain) (ESRC), Great Britain. Low Pay Commission (LPC)
Grant number:	RES000222611 (ESRC)
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URI:	http://wrap.warwick.ac.uk/id/eprint/41103

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