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The manufacturing study’s most compelling evidence comes from a geographic quasi-experiment. Rather than simply comparing firms in high-wage states to those in low-wage states—an approach vulnerable to the objection that those states differ in countless other ways—the researchers focused specifically on companies located in counties that sit directly on state borders, comparing businesses on opposite sides of the same line. These firms face nearly identical local economies, labor markets, and industries. The only meaningful difference is which state’s minimum wage law applies to them.
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