"We study the effect of minimum wage increases on employment in
automatable jobs – jobs in which employers may find it easier to
substitute machines for people – focusing on low-skilled workers from
whom such substitution may be spurred by minimum wage increases. Based
on CPS data from 1980-2015, we find that increasing the minimum wage
decreases significantly the share of automatable employment held by
low-skilled workers, and increases the likelihood that low-skilled
workers in automatable jobs become unemployed. The average effects mask
significant heterogeneity by industry and demographic group, including
substantive adverse effects for older, low-skilled workers in
manufacturing. The findings imply that groups often ignored in the
minimum wage literature are in fact quite vulnerable to employment
changes and job loss because of automation following a minimum wage
increase."
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