IESET.
Hypotheses·labour·minimum_wage_disemployment_at_high_bite_ratios

Minimum-wage increases above the local median-wage ratio produce disemployment effects at the low-skill margin, even if aggregate employment effects are small.

INCONCLUSIVEengine/runs/minimum_wage_disemployment_at_high_bite_ratios

inconclusive — data gap on bls:LAU_state_teen_employment_population_ratio_panel, bls:OES_state_median_hourly_wage_panel. The spec's primary stratified Callaway-Sant'Anna DiD on US-state cohorts split by bite ratio (state-min / state-median-hourly-wage) cannot be estimated without (a) the BLS LAU state teen employment-population panel, (b) the USDOL state minimum-wage history, and (c) the BLS OES state median-hourly-wage panel. On-disk BLS vintages currently include only national LNS/CES/CUUR series; the state fan-out has not been fetched. OECD contextual panels are present but cannot replace the preregistered US state cohort design. No coefficients computed.

confidence cueResult card produced; verdict unclassified.

policy briefNot enough data

In ordinary language

When minimum wages rise high relative to normal local pay, do lower-skill workers keep their jobs, or does hiring fall at the margin?

plain answer

This test cannot make a firm call yet. data gap on bls:LAU_state_teen_employment_population_ratio_panel, bls:OES_state_median_hourly_wage_panel.

why it matters

Labor-market rules often help some workers while risking job loss or slower hiring for others. This test looks for that tradeoff in observable employment or unemployment data.

how the test works

It compares 15 country or place units from 1990 to 2022, using a did callaway santanna design, with fixed effects for state and year.

what was measured
What changed
  • How high the minimum wage is compared with typical local pay
  • State minimum wage
What we checked
  • Teen job rate
  • Unemployment among workers with less education
  • Share of jobs held by lower-skill workers
what this does not prove

A single test is not the whole truth. It narrows the claim under a specific sample, time period, and method. Strong policy conclusions need the pattern to survive nearby tests, alternative data, and serious objections.

verification

4 input datasets, 2 unresolved missing series, provenance status: incomplete.

Results

engine/runs/minimum_wage_disemployment_at_high_bite_ratios
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Who has skin in the game — schools predicting on this

9 schools list this hypothesis as a test of their position. The chips below are school-level scoreboard outcomes, not a second hypothesis verdict.

hypothesis verdict vs scoreboard outcome

The banner verdict judges this hypothesis as written. The scoreboard asks whether each school's polarity-corrected prediction was right. Raw status is not a school win: SUPPORTED supports schools that needed SUPPORTED, but refutes schools that needed REFUTED.

Pre-registration

pre-registered
first-spec commit bae09ab · 2026-04-29T22:09:42Z

Minimum-wage increases above the local median-wage ratio produce disemployment effects at the low-skill margin, even if aggregate employment effects are small.

Falsification criterion — what would disprove this

set before the run · honoured after

This hypothesis is considered falsified if:

The hypothesis is considered falsified if the pre-registered empirical test shows the opposite direction of the claim at conventional significance (p > 0.10), or if the primary outcome measure moves less than 10% in the claimed direction across the sample. Exact thresholds will be pinned in the variables and estimator blocks when this stub is promoted from draft.

formal test & threshold
test:      Stratified Callaway-Sant'Anna DiD on US state min-wage cohorts by bite-ratio terciles 1971-2023; supported if high-bite (>0.6) cohorts show low-skill disemployment >2pp larger than low-bite at p<0.10.

Method

Template
did_callaway_santanna
Fixed effects
state, year
Clustering
state
Sample
15 countries · 19902022
Evidence type
associational

Staggered DiD across US state minimum-wage increases stratified by bite ratio (minimum/median wage). Tests whether high-bite cohorts show measurable low-skill (teen, low-education) disemployment relative to low-bite cohorts.

Data

VariableSourceTransform
teen_employment_to_population
outcome
fred:LNS12300012tier 1
level
low_education_unemployment_rate
outcome
oecd:OECD.ELS.EMPtier 2
level
low_skill_employment_share
outcome
oecd:OECD.ELS.EMPtier 2
share
minimum_to_median_wage_ratio
treatment
oecd:OECD.ELS.SAEtier 2
ratio
state_minimum_wage
treatment
fred:STTMINWGCAtier 1
log
minimum_wage_real_level
treatment
oecd:OECD.ELS.SAEtier 2
log
unemployment_rate
control
world_bank_wdi:SL.UEM.TOTL.ZStier 2
level
gdp_per_capita_real
control
world_bank_wdi:NY.GDP.PCAP.KDtier 2
log
epl_overall_index
control
oecd:OECD.ELS.EMPtier 2
level

ready  ·  pending  ·  reconstruct-needed

Detailed result card

Minimum-wage disemployment at high bite ratios, 1990-2022

Verdict: inconclusive — data gap on bls:LAU_state_teen_employment_population_ratio_panel, bls:OES_state_median_hourly_wage_panel. The spec's primary stratified Callaway-Sant'Anna DiD on US-state cohorts split by bite ratio (state-min / state-median-hourly-wage) cannot be estimated without (a) the BLS LAU state teen employment-population panel, (b) the USDOL state minimum-wage history, and (c) the BLS OES state median-hourly-wage panel. On-disk BLS vintages currently include only national LNS/CES/CUUR series; the state fan-out has not been fetched. OECD contextual panels are present but cannot replace the preregistered US state cohort design. No coefficients computed.

Summary

  • Tests the Chicago-monetarist claim that high bite-ratio (state-min / state-median-hourly-wage ≥ 0.55) cohorts show measurable extra teen disemployment vs low bite-ratio (< 0.45) cohorts in the 1990-2022 US-state panel.
  • Primary statistic: ATT(high-bite) − ATT(low-bite) on teen E/P, percentage points. SUPPORTED iff ≤ −0.020 pp at p<0.10.
  • Informative: Dube-Lester-Reich border-county elasticity on QCEW NAICS-722 (food services); cross-country OECD bite-ratio panel regression for the 15 spec countries.
  • Required series: 1 outcome, 2 treatment (state min-wage history + state median hourly wage), 1 border-pair, 2 OECD = 6 total.
  • Found on-disk: 4 of 6.
  • Missing primary outcome: ['bls:LAU_state_teen_employment_population_ratio_panel'].
  • Missing treatment: ['bls:OES_state_median_hourly_wage_panel'].
  • Missing border-pair: (none).
  • Missing OECD cross-country: (none).
  • Hold marker: HOLD until sibling-panel signs reconcile with the preregistered high-bite disemployment direction.

Method

Pre-registered specification (50-state panel, 1990-2022, excluding 2020-2021 COVID labour-market shock):

Step 1: bite_ratio_{s,t} = state_min_wage_{s,t} /
                            state_median_hourly_wage_{s,t}
Step 2: assign each (state, treatment-cohort) to
        HIGH-BITE if max(bite_ratio) >= 0.55
        LOW-BITE  if max(bite_ratio) <  0.45
Step 3: Callaway-Sant'Anna 2021 staggered DiD on teen E/P,
        state and year FE, never- and late-treated controls,
        state-clustered SE.
Step 4: Differential = ATT_high - ATT_low (percentage points).

Falsification thresholds (dispositive): PRIMARY: differential ≤ -0.020 pp at p<0.10 → SUPPORTED. REFUTED if differential ≥ 0 at p<0.10 (Chicago direction wrong). REFUTED if |differential| < +0.005 pp with sufficient power (effect too small to support the claim).

Informative (not gating): Border-county DLR elasticity on QCEW NAICS-722 employment for state-pairs whose bite ratios diverge by ≥ 0.10. OECD MWUSD bite-ratio panel: low-skill unemployment rate ~ bite-ratio + country FE + year FE on the 15-country spec sample.

Data

Required (per spec):

  • bls:LAU_state_teen_employment_population_ratio_panelmissing
  • usdol:state_minimum_wage_history — available
  • bls:OES_state_median_hourly_wage_panelmissing
  • bls:QCEW_county_NAICS722_employment_panel — available
  • oecd:MWUSD — available
  • oecd:DSD_LMS_low_education_unemployment_rate — available

Promotion verdict: inconclusive (method-validity gate fails on data availability — the primary state-level BLS outcome and median-wage bite-ratio inputs are not on disk; OECD contextual panels are present but cannot replace the preregistered US state cohort design). Per HANDOFF_TO_RUN_AGENT.md a data gap is NOT a refutation — the scoreboard treats this as neutral. Re-run when (a) the BLS state fan-out lands (LAU state teen E/P panel, OES state median hourly wage), and (b) sibling-panel signs reconcile with the preregistered high-bite disemployment direction.

Notes

Stub seeded from a Chicago-monetarist school prediction about minimum-wage bite-ratio disemployment. Cross-country bite-ratio measurement is harmonised through OECD; needs human review on demographic-margin definition.

Authored framework. Read the transparency note.