In this study, I wanted to see the effect minimum wage increases had on unemployment. To find the probability of being unemployed in two contiguous states (Oregon and Nevada) in the period 2002-2003 (the minimum wage in both states were at or above the federal minimum, and Oregon saw a much bigger increase), I took a number of dummy variables created from data taken from the Current Population Survey (CPS) and compared them in each state. Using variables for being “black” or “non-black,” “female” or “non-female,” etc. and filtering
Overall, the P values and R2 values showed that each of these variables had little effect on employment overall, but that the increase in the minimum wage did cause a small decrease. However, the values showed no strong statistical significance, so the study was fairly inconclusive to the main question of whether or not a wage increase causes any decrease in employment among a wide range of people.