@TechReport{iza:izadps:dp13369, author={Ku, Hyejin}, title={Does Minimum Wage Increase Labor Productivity? Evidence from Piece Rate Workers}, year={2020}, month={Jun}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={13369}, url={https://www.iza.org/publications/dp13369}, abstract={We examine worker effort as a potential margin of adjustment to a minimum wage hike using unique data on piece rate workers who perform a homogenous task and whose individual output is rigorously recorded. By employing a difference-in-differences strategy that exploits the increase in Florida's minimum wage from $6.79 to $7.21 on January 1, 2009, and worker location on the pre-2009 productivity distribution, we provide evidence consistent with incumbent workers' positive effort responses.}, keywords={labor productivity;labor productivity;effort;effort;incentive;minimum wage}, }