Human capital theory suggests that workers may finance on-the-job training by accepting lower wages during the training period. Minimum wage laws could reduce job training, then, to the extent they prevent low-wage workers from offering sufficient wage cuts to finance training. Empirical...

This paper utilizes worker-firm matched data on city contract establishments affected by the Los Angeles Living Wage Ordinance to explore the extent of labor-labor substitution following establishment of a minimum wage. We are able to test for substitution on observable and unobservable skill...