Luduvice, André Victor Doherty; Martínez, Tomás R.; … - 2024
This paper studies the effects of the minimum wage on the life cycle of firms. We first build a tractable model where … minimum wage hike not only shrinks young and low-productivity firms but also lowers incentives to innovate, resulting in lower … variation in exposure across establishments and municipalities to the large increase in the minimum wage between 1999 and 2010 …