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Minimum Wages and Nascent Entrepreneurship in the US.
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- Author(s): Kwapisz, Agnieszka
- Source:
B.E. Journal of Economic Analysis & Policy; Jan2020, Vol. 20 Issue 1, pN.PAG-N.PAG, 15p, 1 Diagram, 3 Charts, 2 Graphs- Subject Terms:
- Source:
- Additional Information
- Abstract: The effect of minimum wages on employment is one of the most widely studied and most controversial topics in labor economics and public policy but its impact on early startups is poorly understood and under-researched. In this manuscript, we investigate whether minimum wage rates correlate with the probability that a nascent startup hires employees and achieves profitability, a topic that has never been addressed before. We found negative but not significant correlation between the minimum wage rates and a nascent venture's probability of hiring employees. However, female entrepreneurs were significantly less likely than male entrepreneurs to hire when faced with higher minimum wage rates. For ventures with employees, higher minimum wage rates were correlated with lower probability of achieving profitability vs. quitting the startup process. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of B.E. Journal of Economic Analysis & Policy is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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