V. Minimum Wage Effects on Employment and Working Hours
In the present paper, following the traditional research of labor economics, we split the analysis
of women and men in all the regressions. We first consider the employment effect in the basic
DID model(model (1)in Table 6). The variable we are interested in is the interaction term of the
experiment group dummy and the time dummy in Table 6. There are obvious differences in
minimum wage effects between women and men, which validates our choice of splitting the two
samples. Moreover, both estimation results are very significant (–0.16 and 0.13; see model (1)
in Table 6), and more than 10 percent of the less-educated employed population is affected by
a minimum wage increase. This estimation is relatively high compared with the result in earlier
studies. For example,Brown etal.(1982) point out that a 10-percent increase in minimum wage
only reduces teenage employment by 1–3 percent.