Ina Ganguli

(joint with Raviv Murciano-Goroff)

Abstract: We estimate the impact of changes in state minimum wage laws on demand for lab personnel and scientific productivity. Using administrative data from the accounting records of thousands of labs at U.S. research universities and a difference-in-differences framework, we find that scientists employ fewer undergraduates and research staff in response to minimum wage changes. We further show that minimum wage changes lower scientific productivity and that there are small reallocation effects across labs. Our analysis demonstrates the need for insurance mechanisms or increased budget flexibility for principal investigators, particularly for those at universities seeking to provide undergraduates with research experience.