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Who Bears the Cost? High-Frequency Evidence on Minimum Wage Effects and Amenity Pass-Through in Spot Labor Markets

2025-05-07 · Hayato Kanayama, Sho Miyaji, Suguru Otani

This paper provides causal evidence on the short-run effects of minimum wage hikes in a spot labor market, using confidential contract-level data from Timee, a Japanese job-matching platform. Leveraging high-frequency variation and a bin-level difference-in-differences design, we find a 2 percentage point decline in employment within affected wage bins, with losses concentrated below the new threshold. Transportation reimbursement--a flexible nonwage amenity--remains largely unchanged, indicating limited pass-through. These findings suggest that spot labor markets adjust rapidly through wage compliance, with the cost burden borne by establishments rather than offset through reductions in job amenities.

📄 PDF Abstract BibTeX arXiv:2505.04555

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