<p>A very famous study in this direction is <a href="https://www.jstor.org/stable/2118030" rel="noreferrer">Card and Krueger (1994)</a>.
They look an increase in the minimum wage in New Jersey in 1992. While New Jersey raised the minimum wage from USD 4.25/h to USD 5.05/h, the minimum wages remained at $4.25 in adjacent Pennsylvania.</p>

<p>You should have a look at the subsequent research.</p>

CC BY-SA 3.0
2017-01-06T19:21:05.927Z
Most excellent! Thank you for the direction.
Jordan Walls
CC BY-SA 3.0
2017-01-07T17:04:43.800Z
It should be pointed out that the model Card and Krueger use to identify the effects of minimum wages assumes that Minimum Wages do not affect adjacent labor markets. So while the paper goes in this direction it cannot really answer the question asked here.
Tobias
CC BY-SA 3.0
2017-01-13T09:44:30.277Z
Jobs, are not amazon goods that go through delivery service chains.
mootmoot
CC BY-SA 3.0
2017-01-06T15:10:16.480Z
2017-01-06T15:10:16.480Z
Bayesian
<p>You should look at this county pairing methodology used by Dube, Lester and Reich (2010). <a href="http://escholarship.org/uc/item/86w5m90m" rel="nofollow noreferrer">http://escholarship.org/uc/item/86w5m90m</a></p>

<p><strong>The abstract</strong>:</p>

<blockquote>
  <p>We use policy discontinuities at state borders to identify the effects of minimum wages on earnings
  and employment in restaurants and other low-wage sectors. Our approach generalizes the case
  study method by considering all local differences in minimum wage policies between 1990 and
  2006. We compare all contiguous county pairs in the U.S. that straddle a state border and find
  no adverse employment effects. We show that traditional approaches that do not account for
  local economic conditions tend to produce spurious negative effects due to spatial heterogeneities
  in employment trends that are unrelated to minimum wage changes.</p>
</blockquote>

CC BY-SA 3.0
2017-01-12T19:27:22.043Z
again, all the papers using geographical differences to identify effects of minimum wages rest on the assumption that minimum wages did only affect the place where minimum wages went up. If you want to learn about spillover effects, they do not help you.
Tobias
CC BY-SA 3.0
2017-01-12T18:27:31.990Z
2017-01-13T05:21:57.760Z
2017-01-13T05:21:57.760Z
Vincek
<p>When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities? </p>

<p>Are there examples, studies or accepted practices to address: Difficulty staffing entry level positions when labor pool can work across the street for several dollars/hr more? </p>

CC BY-SA 3.0
2017-01-13T09:38:55.980Z
I am intriguing the lack of common sense of such question like many other economy question : i) jobs are not infinite ii) Jobs are acquisition are not simple as e-commerce price comparison.
mootmoot
CC BY-SA 3.0
2017-01-20T00:06:05.797Z
I do not disagree. Unfortunately, policy is not made on the logic of common sense. When you're attempting to convince a company to raise their wages, causal data evidencing your position is the most difficult argument to counter.
Jordan Walls
<labor-economics><unemployment><wages><minimum-wage><labor-cost>
Minimum Wage effects on Adjacent Cities
Jordan Walls
# Minimum Wage effects on Adjacent Cities

(Asked by: username_0 on 2017-01-06)

When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities?

Are there examples, studies or accepted practices to address: Difficulty staffing entry level positions when labor pool can work across the street for several dollars/hr more?

**Tags:** labor-economics, unemployment, wages, minimum-wage, labor-cost

> **Comments:**
> **username_1**: I am intriguing the lack of common sense of such question like many other economy question : i) jobs are not infinite ii) Jobs are acquisition are not simple as e-commerce price comparison.  
> **username_0**: I do not disagree. Unfortunately, policy is not made on the logic of common sense. When you're attempting to convince a company to raise their wages, causal data evidencing your position is the most difficult argument to counter.  

---

## 2 answers

### Answer by username_4 on 2017-01-12. Score: 3 | Accepted answer

You should look at this county pairing methodology used by Dube, Lester and Reich (2010). <http://escholarship.org/uc/item/86w5m90m>

**The abstract**:

> We use policy discontinuities at state borders to identify the effects of minimum wages on earnings
> and employment in restaurants and other low-wage sectors. Our approach generalizes the case
> study method by considering all local differences in minimum wage policies between 1990 and
> 2006. We compare all contiguous county pairs in the U.S. that straddle a state border and find
> no adverse employment effects. We show that traditional approaches that do not account for
> local economic conditions tend to produce spurious negative effects due to spatial heterogeneities
> in employment trends that are unrelated to minimum wage changes.

> **Comments:**
> **username_3**: again, all the papers using geographical differences to identify effects of minimum wages rest on the assumption that minimum wages did only affect the place where minimum wages went up. If you want to learn about spillover effects, they do not help you.  

---

### Answer by username_2 on 2017-01-06. Score: 8

A very famous study in this direction is [Card and Krueger (1994)](https://www.jstor.org/stable/2118030).
They look an increase in the minimum wage in New Jersey in 1992. While New Jersey raised the minimum wage from USD 4.25/h to USD 5.05/h, the minimum wages remained at $4.25 in adjacent Pennsylvania.

You should have a look at the subsequent research.

> **Comments:**
> **username_0**: Most excellent! Thank you for the direction.  
> **username_3**: It should be pointed out that the model Card and Krueger use to identify the effects of minimum wages assumes that Minimum Wages do not affect adjacent labor markets. So while the paper goes in this direction it cannot really answer the question asked here.  
> **username_1**: Jobs, are not amazon goods that go through delivery service chains.  

---

