Do Minimum Wage Increases Induce Changes In Work Behavior For People With Disabilities? Evidence From The AbilityOne Program

Document Type

Article

Publication Date

1-2025

Published In

Labour Economics

Abstract

We provide the first evidence on the effects of minimum wage increases on labor market outcomes for people with disabilities. We use a novel dataset consisting of quarterly data on employment, earnings, and hours for workers at nonprofit firms that participate in the federal AbilityOne program. The nonprofits in this program are offered advantages in government contracting, though must primarily employ workers with disabilities. Using recent local variation in minimum wage changes, we find that increasing the minimum wage does not affect employment outcomes for workers with disabilities in this specific context, with precisely estimated null effects. However, these nonprofits respond along non-employment related margins after relatively large minimum wage increases.

Keywords

Minimum wage, Nonprofits, Disability, Employment, AbilityOne program

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