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The Response of Hours of Work to Increases in the Minimum Wage

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Author Info

  • Kenneth A. Couch

    ()
    (Department of Economics, University of Connecticut)

  • David C. Wittenburg

    ()
    (Research Associate, The Urban Institute)

Abstract

This paper examines the effect of minimum wage increases on the hours of work of teenagers (ages 16 to 19) using monthly data from the Current Population Survey. Our findings are consistent with the prediction from neoclassical theory that minimum wage increases have a negative effect on labor demand. However, the estimates we provide here for the elasticity of hours of teen labor demanded with respect to the minimum wage suggest that alternative estimates based on aggregate employment consistently understate the total impact of minimum wage increases on teenage labor utilization.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 68 (2001)
Issue (Month): 1 (July)
Pages: 171-177

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Handle: RePEc:sej:ancoec:v:68:1:y:2001:p:171-177

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Web page: http://www.southerneconomic.org/
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Cited by:
  1. David Neumark & William Wascher, 2006. "Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research," NBER Working Papers 12663, National Bureau of Economic Research, Inc.
  2. Joseph J. Sabia, 2008. "Minimum wages and the economic well-being of single mothers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 27(4), pages 848-866.
  3. Mark B. Stewart & Joanna K. Swaffield, 2008. "The Other Margin: Do Minimum Wages Cause Working Hours Adjustments for Low-Wage Workers?," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 75(297), pages 148-167, 02.
  4. Joseph Sabia, 2009. "The Effects of Minimum Wage Increases on Retail Employment and Hours: New Evidence from Monthly CPS Data," Journal of Labor Research, Springer, Springer, vol. 30(1), pages 75-97, March.
  5. Daniel Cardona & Fernando Sanchez Losada, 2003. "Union Power, Minimum Wage Legislation, Endogenous Labor Supplies and Production," Working Papers in Economics, Universitat de Barcelona. Espai de Recerca en Economia 105, Universitat de Barcelona. Espai de Recerca en Economia.
  6. Strobl, Eric & Walsh, Frank, 2011. "The ambiguous effect of minimum wages on hours," Labour Economics, Elsevier, Elsevier, vol. 18(2), pages 218-228, April.
  7. STROBL, Eric & WALSH, Frank, 2003. "Dealing with monopsony power: the case for using employment subsidies," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2003079, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Strobl, Eric & Walsh, Frank, 2002. "Getting It Right: Employment Subsidy or Minimum Wage?," IZA Discussion Papers 662, Institute for the Study of Labor (IZA).
  9. STROBL, Eric & WALSH, Frank, 2004. "The impact of minimum wages on hours and employment revisited," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2004023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Pia M. Orrenius & Madeline Zavodny, 2008. "The effect of minimum wages on immigrants' employment and earnings," Working Papers, Federal Reserve Bank of Dallas 0805, Federal Reserve Bank of Dallas.
  11. Strobl, Eric & Walsh, Frank, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Economics Letters, Elsevier, Elsevier, vol. 94(1), pages 83-89, January.

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