Earlier this month, a bill to raise the minimum wage to $15 per hour and eliminate the tipped minimum wage was introduced in Ohio. Minimum wage policies can have wide reaching effects, but much of the impact is tied to how minimum wages interact with the labor market. 

Theoretically, minimum wages might decrease employment if it raises the price floor above the equilibrium wages in a competitive market. Alternatively, higher wages might incentivize more people to join the labor force, which could have positive overall employment effects.

We are interested in understanding what might happen to Ohio’s labor market if this bill were passed. Your goal is to make a quantitative estimate of the unemployment rate in Ohio after a $15 minimum wage was implemented. Please present your findings in a short memo of no more than 300 words. 

You can submit your responses by email to michael@sciotoanalysis.com. Assignments will be due Wednesday, August 20th, at 4:59pm. After you submit your assignment, you will be able to sign up for a 30 minute zoom interview.