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).
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.