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Table 5 The effects of the minimum wage on log restaurant employment, “falsification tests,” county-level QCEW data

From: More on recent evidence on the effects of minimum wages in the United States

  Dependent variable: Log (restaurant employment)
  DLR estimates False variation in federal minimum wage Correct Maryland minimum wage error
  DLR data and estimates: 1990:Q1-2006:Q2 (Table B1, specification 2) Federal minimum lower by 5 cents (4.20/4.70/5.10 instead of 4.25/4.75/5.15 beginning in 91:Q2/96:Q4/97:Q3) Federal minimum wage always = $3.35 Same as column (1), but with corrected Maryland minimum wage Sample restricted to 1998:Q3-2006:Q2 (period with no federal MW changes), with corrected Maryland minimum wage Sample restricted to 1998:Q3-2006:Q2, county pairs with minimum wage difference for at least one quarter, with corrected Maryland minimum wage
  (1) (2) (3) (4) (5) (6)
Actual MW sample:
Log(MW) −0.208 (0.150) −0.114 (0.155) −0.198** (0.079) −0.174** (0.085)
Placebo MW sample:
Log(MW) −0.123 (0.158) −0.111 (0.157) −0.099** (0.042) −0.125 (0.134) −0.088 (0.062) 0.035 (0.100)
  1. Notes: All specifications include period and county fixed effects, and controls for population and private-sector employment. Standard errors are clustered at the state level. *Statistically significant at the .10 level; ** at the .05 level; *** at the .01 level. (See NSW, 2014, for more details).