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Joint Strategy & Business Economics and Labor Economics Workshop: Lisa Kahn

Tuesday, April 17, 2018 at 11:40am to 1:10pm

Sage Hall, 333
Johnson Graduate School-Management, 106 Sage Hall, Ithaca, NY 14853-6201, USA

Lisa Kahn - Yale University

Personnel Policy Responses to Minimum Wage:  Upskilling, Fringe Benefits, and Worker Welfare


This paper explores firm-level responses to minimum wage hikes beyond employment.

We advance a conceptual framework that describes the conditions under which a minimum wage increase will alter the provision of fringe benefits, alter employment outcomes, and either increase or decrease worker welfare. We also highlight that labor-labor substitution models imply important distributional consequences of the minimum wage. Using American Community Survey data and job vacancy postings from Burning Glass over the period 2011-2016, we find robust evidence that state-level minimum wage changes decreased the likelihood that individuals report having employer-sponsored health insurance and increased the skill level and skill requirements in low-paying occupations. Effects on skill requirements hold within firm. We estimate that these effects offset between 10 and 25% of wage increases associated with minimum wage hikes. We also find evidence that both insurance coverage and wage effects exhibit spillovers into occupations moderately higher up the skill distribution.


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Event Type

Class/ Workshop, Seminar


Economics, Cornell SC Johnson College of Business


EconSeminar, EconLabor, EconStratBus, economics



Contact E-Mail

Contact Name

Sarah Ashman

Contact Phone



Lisa Kahn

Speaker Affiliation

Yale University

Open To

Cornell Economics Community (List Serve Members)