The impact of the minimum wage in West Virginia: A test of the low-wage-area theory

摘要

VI. Conclusions West Virginia counties do provide evidence of significant dis-employment due to the minimum wage, a finding that supports the theory that low-wage areas are more susceptible to employment losses when the legislated minimum wage is increased. My results show that a 10 percent increase in the minimum wage will reduce total employment in the average West Virginia county by 1.1 percent. The most rural counties may also respond more severely, up to 1.4 percent for the same minimum wage change.