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Titel
Some (maybe) unpleasant arithmetic in minimum wage evaluations : the role of power, significance and sample size / Ronald Bachmann, Rahel Felder, Sandra Schaffner, and Marcus Tamm
VerfasserBachmann, Ronald In der Gemeinsamen Normdatei der DNB nachschlagen ; Felder, Rahel In der Gemeinsamen Normdatei der DNB nachschlagen ; Schaffner, Sandra In der Gemeinsamen Normdatei der DNB nachschlagen ; Tamm, Marcus In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenEssen : RWI - Leibniz-Institut für Wirtschaftsforschung, 2018 ; Bochum : Ruhr-Universität Bochum (RUB), Department of Economics, 2018
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Elektronische Ressource
Umfang1 Online-Ressource (23 Seiten)
SerieRuhr economic papers ; #772
ISBN978-3-86788-900-1
URNurn:nbn:de:hbz:6:2-103797 Persistent Identifier (URN)
DOI10.4419/86788900 
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Some (maybe) unpleasant arithmetic in minimum wage evaluations [0.35 mb]
Zusammenfassung

In this paper, we discuss the importance of sample size in the evaluation of minimum wage effects. We first show which sample sizes are necessary to make reliable statements about the effects of minimum wages on binary outcomes, and second how to determine these sample sizes. This is particularly important when interpreting statistically insignificant effects, which could be due to (i) the absence of a true effect or (ii) lack of statistical power, which makes it impossible to detect an effect even though it exists. We illustrate this for the analysis of labour market transitions using two data sets which are particularly important in the minimum wage research for Germany, the Integrated Labour Market Biographies (IEB) and the Socio-Economic Panel (SOEP).

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