The impact of the minimum wage on DI participation

Engelhardt, Gary V. “The impact of the minimum wage on DI participation”. CRR WP 2020-6, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, January 2020. http://hdl.handle.net/2345/bc-ir:108867.
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Abstract

This report provides an empirical analysis of the impact of the minimum wage on DI claims and awards. It draws on data from the Social Security Administration's State Agencies Monthly Workload Dataset, from which a state-by-year panel of DI claims and awards is constructed for 2002-2017 and matched to data on the real effective minimum wage, the higher of the federal and state minimum wage in each state and year. Then two reduced-form estimation methodologies are employed. The first follows studies in the hourly wage-inequality literature and models log DI claims as a function of the bindingness of the minimum wage in the state hourly wage distribution. The second follows studies in the minimum wage disemployment literature and models log claims (in both levels and first-differences) as a function of a distributed lag of the minimum wage.

Title
The impact of the minimum wage on DI participation
Author
Engelhardt, Gary V.
Center
Center for Retirement Research
Genre
Working paper
Date Issued
January 2020
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2020-6
Persistent Link
http://hdl.handle.net/2345/bc-ir:108867
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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