Abstract
This paper studies the effects of state minimum wage increases on information technology (IT) budget at the establishment level in the United States. We find establishments in states that experience significant minimum wage increases on average allocate $62,342 more per year to IT budgets. The effects are heterogeneous across industry, firm, or establishment characteristics. Additional evidence suggests that significant state minimum wage increases lead to higher IT capital. Our results suggest that establishments change production technology in response to increases in the wage floor.
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