Essays on Policy in Low-Wage Labor Markets

Abstract

Many policies seek to improve the lot of low-wage workers in the United States and thus target the labor markets in which they work. However, the effects of these policies may be complicated by the features of these markets. These essays examine three such instances. In the first, the Department of Labor extended federal wage and hour regulation to cover previously-exempt home care workers, making them eligible for minimum wage, overtime pay, and travel pay protections for the first time. We argue that the effects of the policy are influenced by the fact that many home care clients pay for their services with Medicaid, which pays home care agencies a fixed rate. The second essay turns to occupational licensing requirements, particularly restrictions that prevent workers with prior felony convictions from receiving a license. I find that the same regulation has different effects when implemented by the legislature than when it is implemented by the occupational licensing board, highlighting the role of different incentives between an elected legislature and a board of professionals tasked with regulating itself. Finally, the third essay examines Ban the Box policies, which remove criminal record questions from job applications. While prior work has modeled this as a removal of information, employers frequently conduct pre-employment background checks. I model this delay of information and explore the predictions that differ from when it is considered a removal of information.