Conclusion - Yuan-032/Econometrics_pre GitHub Wiki

In this project, we first develop a basic OLS model and then include year dummies to figure our how minimum wage has different impacts over different time period. At the end, we build a panel regression model to eliminate state fixed effect and time fixed effect. All of our three regression models have shown that a rise in minimum wage has a corresponding negative impact on employment rate, which is consistent with previous studies (Jonathan Meer and Jeremy West, 2012). In the future, one can add more factors, such as job growth rate or government welfare spending, in order to draw further conclusion about how minimum wage impact our society.