Accessible Version
Do Landlords Respond to Wage Policy? Estimating the Minimum Wage Effect on Apartment Rent Prices, Accessible data
Figure 1. Percent Change in Minimum Wage Between January 2010 and December 2019
Figure 1 displays a map of the continental U.S. with blue shading to represent a geography’s percent change in statutory minimum wage between January 2010 and December 2019. Many places experienced no change in minimum wage over this time period. However, 29 states and 49 sub-state jurisdictions (cities and counties) did raise their minimum wage at some point during this period. Sub-state minimum wages tended to increase more than state minimum wages. The three states (or state equivalents) that increased their minimum wages the most were the District of Columbia (69.7 percent), New York (62.8 percent), and Colorado (53.1 percent). The three sub-state jurisdictions that increased their minimum wages the most were New York, NY (106.9 percent), Emeryville, CA (103.8 percent), and Mountain View, CA (95.63 percent).
Notes: The Los Angeles County minimum wage applies to unincorporated areas within the county, meaning incorporated cities in the county use the California state minimum wage unless they pass their own city wage ordinance.
Source: Data from Vaghul and Zipperer (2022); author’s own calculations.
Figure 2. Event Study Estimates, Within-CBSA Comparisons
Figure 2 displays the estimates from my event study regression specification using within-CBSA comparisons. Point estimates are plotted with the dark blue line and dark blue squares and the corresponding 95% confidence intervals are plotted as light blue shaded regions. The pre-event coefficients hover around zero and are statistically insignificant. The coefficients for the month of the event and the following month are both positive and statistically significant, but subsequent post-event coefficients are statistically insignificant and converge towards zero in magnitude.
Notes: Estimates based on 4,666 apartment buildings. Shaded area represents 95% confidence intervals, with standard errors clustered at the state level.
Source: Data from RealPage, Inc. and Vaghul and Zipperer (2022); author's own calculations.
Figure 3. Event Study Estimates, Nationwide Comparisons
Figure 3 displays the estimates from my event study regression specification using nationwide comparisons instead of within-CBSA. Point estimates are plotted with the dark blue line and dark blue squares and the corresponding 95% confidence intervals are plotted as light blue shaded regions. The coefficients are trending upward over the whole time period, starting off negative prior to the event and turning positive post-event. Most of the coefficients are statistically insignificant except for in months 2 through 7 after the event.
Notes: Estimates based on 32,643 apartment buildings. Shaded area represents 95% confidence intervals, with standard errors clustered at the state level.
Source: Data from RealPage, Inc. and Vaghul and Zipperer (2022); author's own calculations.
Figure 4. Low-Cost Apartment Event Study Estimates, Within-CBSA Comparisons.
Figure 4 displays the estimates from my event study regression specification using within-CBSA comparisons and low-cost apartments. Point estimates are plotted with the dark blue line and dark blue squares and the corresponding 95% confidence intervals are plotted as light blue shaded regions. The pre-event coefficients are all positive but statistically insignificant and not trending in any specific direction. The coefficients for the month of the event and the following 5 months are positive and statistically significant, but subsequent post-event coefficients are statistically insignificant and converge towards zero in magnitude.
Notes: Estimates based on 1,844 apartment buildings. Shaded area represents 95% confidence intervals, with standard errors clustered at the state level.
Source: Data from RealPage, Inc. and Vaghul and Zipperer (2022); author's own calculations.