Recent attempts to
incorporate spatial heterogeneity in minimum-wage employment models have been
attacked for using overly simplistic trend controls, and for neglecting the
potential impact on employment growth. We investigate whether such
considerations call into question our earlier findings of statistically
insignificant employment effects for the restaurant-and-bar sector. We find that a focus on employment levels is
still appropriate, and nonlinear trend controls do not dislodge our limited
support for the existence of minimum-wage effects.
JEL Classification: J23, J38.
wages, employment, employment change, spatial controls