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How Minimum Wages Affect Schooling-Employment Outcomes in Canada, 1993-1999

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  • MICHELE CAMPOLIETI
  • TONY FANG
  • MORLEY GUNDERSON

Abstract

Based on longitudinal data from the Master File of the Survey of Labour and Income Dynamics (SLID) for Canada for 1993-1999, we provide multinomial logit estimates of the effect of minimum wages on the probability of being in one of four schooling-employment states as well as transitions across the states. We find that minimum wage increases led to large and statistically significant reductions in the employment of teenagers but had no net effect on their school enrollment or on the individual transition probabilities. We also find no substantial substitution of students for nonstudents or students leaving school to queue for the higher minimum wage jobs.

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Bibliographic Info

Article provided by Transaction Publishers in its journal Journal of Labor Research.

Volume (Year): 26 (2003)
Issue (Month): 3 (August)
Pages: 533-545

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Handle: RePEc:tra:jlabre:v:26:y:2003:i:3:p:533-545

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Web page: http://transactionpub.metapress.com/link.asp?target=journal&id=110581

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Cited by:
  1. Michele Campolieti & Morley Gunderson & Byron Lee, 2012. "The (Non) Impact of Minimum Wages on Poverty: Regression and Simulation Evidence for Canada," Journal of Labor Research, Springer, vol. 33(3), pages 287-302, September.
  2. Cardoso, Ana Rute, 2009. "Long-Term Impact of Youth Minimum Wages: Evidence from Two Decades of Individual Longitudinal Data," IZA Discussion Papers 4236, Institute for the Study of Labor (IZA).
  3. Patricia Rice, 2010. "Minimum Wages and Schooling: Evidence from the UK's Introduction of a National Minimum Wage," Economics Series Working Papers 482, University of Oxford, Department of Economics.

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