Date of Award

2020

Document Type

Honors Thesis

Degree Name

Bachelor of Science (BS)

School

CAS

Department

Economics Department

Faculty Advisor

Johnathan Haughton

Abstract

This paper collected and collated data from multiple governmental sources as well as other research studies and written sources to examine whether raising the minimum wage from 7.25$ to 15$ would affect the economy and if it does—how drastically. Data collected from the Bureau of Labor Statistics, the Department of Labor, A Guide to Cost Benefit Analysis by Edward Gramlich, etc. This data was then collated into an easily comparable and viewable form. Then it was put into Stata and run through various regressions to determine the impact of the minimum wage on the factors of unemployment and income per capita. I predicted that the impact on unemployment and income per capita by raising the federal minimum wage would be large. My regressions proved that the minimum wage does affect unemployment, unemployment does not drive the minimum wage however, and that the income per capita of a state is significantly affected by an increase in the minimum wage. This proves my hypothesis partially true, but more data retrieval and analysis need to be done in order to provide more definitive answers.

Creative Commons License

Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License.

Included in

Economics Commons

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