Journal article
Minimum Wage Hikes and Technology Adoption: Evidence from US Establishments
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS
23 May 2023
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This article studies the effects of state minimum wage increase on information technology (IT) adoption at the establishment level in the United States. Our results show that treatment establishments on average allocate between $10,328 and $66,808 more per year to their IT budgets during the first 3 years after experiencing significant state minimum wage increases. Additional evidence shows that state minimum wage increases on average lead to an economically small decrease in employment. The estimated employment effect is larger for establishments that have more incentives to automate labor. Our results suggest that establishments adopt technology to countervail increased labor costs.
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Details
- Title
- Minimum Wage Hikes and Technology Adoption: Evidence from US Establishments
- Publication Details
- JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS
- Publisher
- CAMBRIDGE UNIV PRESS; NEW YORK
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Drexel University
- Web of Science ID
- WOS:001061803800001
- Scopus ID
- 2-s2.0-85160772085
- Other Identifier
- 991021861188804721
UN Sustainable Development Goals (SDGs)
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Source: SDGs in the Output
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics