Minimum wage and transition of non-employer firms intending to hire employees into employer firms: State-level evidence from the US

Among the non-employer firms who intend to hire, the higher state-level minimum wage could dissuade them from becoming employer firms. Using data from Business Formation Statistics in the US, we assess the effect of within-state variation in minimum wage on three state-level outcomes: count of business applications for Employer Identification Number (EIN) from firms intending to hire employees; count of firms who transition into employer firms...