Abstract

This study investigates the health effects of minimum wage increases among older workers in the United States, particularly those aged 65 and above, who constitute a substantial share of minimum wage employment. While existing literature has explored the employment effects of minimum wage increases for this demographic, the health implications have not yet been examined. Using data from the Health and Retirement Study covering the period 1996 to 2016 and leveraging state-level variations in minimum wage policies, we employ difference-in-differences designs that are robust to staggered treatments. Our analysis finds that the initial one-dollar increase in the state minimum wage (in 2016 dollars) has significant negative effects on self-reported health but no significant effects on cognitive functioning among individuals whose baseline hourly wage is near the prevailing minimum wage.  These results are supported by null findings in placebo tests conducted on individuals earning slightly more than the minimum wage at baseline. This study contributes to the broader understanding of the health implications of minimum wage policies, with a specific focus on older workers in an aging population.