Please use this identifier to cite or link to this item: https://doi.org/10.1257/aer.102.7.3111
Title: The spending and debt response to minimum wage hikes
Authors: Aaronson, D.
Agarwal, S. 
French, E.
Issue Date: Dec-2012
Citation: Aaronson, D., Agarwal, S., French, E. (2012-12). The spending and debt response to minimum wage hikes. American Economic Review 102 (7) : 3111-3139. ScholarBank@NUS Repository. https://doi.org/10.1257/aer.102.7.3111
Abstract: Immediately following a minimum wage hike, household income rises on average by about $250 per quarter and spending by roughly $700 per quarter for households with minimum wage workers. Most of the spending response is caused by a small number of households who purchase vehicles. Furthermore, we find that the high spending levels are financed through increases in collateralized debt. Our results are consistent with a model where households can borrow against durables and face costs of adjusting their durables stock. Copyright © 2012 by the American Economic Association.
Source Title: American Economic Review
URI: http://scholarbank.nus.edu.sg/handle/10635/123844
ISSN: 00028282
DOI: 10.1257/aer.102.7.3111
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