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Minimum Wage Effects in the Longer Run

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  • David Neumark
  • Olena Nizalova

Abstract

Exposure to minimum wages at young ages could lead to adverse longer-run effects via decreased labor market experience and tenure, and diminished education and training, while beneficial longer-run effects could arise if minimum wages increase skill acquisition. Evidence suggests that as individuals reach their late 20s, they earn less the longer they were exposed to a higher minimum wage at younger ages, and the adverse longer-run effects are stronger for blacks. If there are such longer-run effects of minimum wages, they are likely more significant than the contemporaneous effects on youths that are the focus of research and policy debate.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 42 (2007)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:42:y:2007:i2:p435-452

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Web page: http://jhr.uwpress.org/

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Minimum wages and the young
    by chris dillow in Stumbling and Mumbling on 2007-03-19 12:49:35
  2. Youth unemployment
    by Eric Crampton in Offsetting Behaviour on 2010-05-06 02:39:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Oguzhan C. Dincer & Peter J. Lambert, 2012. "Taking care of your own: ethnic and religious heterogeneity and income inequality," Journal of Economic Studies, Emerald Group Publishing, vol. 39(3), pages 290-313, December.
  2. Mo, Pak Hung, 2011. "Minimum Wage Legislation and Economic Growth: Channels and Effects," MPRA Paper 35820, University Library of Munich, Germany.
  3. Aspen Gorry, 2008. "Labor Market Connections, Minimum Wages, and Youth Employment," 2008 Meeting Papers 794, Society for Economic Dynamics.
  4. Gorry, Aspen, 2010. "Minimum Wages and Youth Employment," MPRA Paper 25296, University Library of Munich, Germany.
  5. Zsofia Barany, 2011. "The minimum wage and inequality - the effects of education and technology," Sciences Po publications info:hdl:2441/eu4vqp9ompq, Sciences Po.
  6. Draca, Mirko & Machin, Steve & Van Reenen, John, 2006. "Minimum Wages and Firm Profitability," CEPR Discussion Papers 5456, C.E.P.R. Discussion Papers.
  7. J. O’Roark & William Wood, 2011. "Determinants of congressional minimum wage support: the role of economic education," Public Choice, Springer, vol. 147(1), pages 209-225, April.
  8. Loughrey, Jason & Donnellan, Trevor & Hanrahan, Kevin & Hennessy, Thia, 2013. "Agricultural Labour Market Flexibility in the EU and Candidate Countries," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152330, International Agricultural Trade Research Consortium.
  9. Steven J. Davis & Luis Rivera-Batiz, 2005. "The Climate for Business Development and Employment Growth in Puerto Rico," NBER Working Papers 11679, National Bureau of Economic Research, Inc.
  10. Leigh, Andrew, 2008. "Estimating the impact of gubernatorial partisanship on policy settings and economic outcomes: A regression discontinuity approach," European Journal of Political Economy, Elsevier, vol. 24(1), pages 256-268, March.
  11. Zsófia L. Bárány, 2011. "The Minimum Wage and Inequality - The Effects of Education and Technology," CEP Discussion Papers dp1076, Centre for Economic Performance, LSE.
  12. Maria J. Hanratty, 2006. "Has the Food Stamp program become more accessible? Impacts of recent changes in reporting requirements and asset eligibility limits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(3), pages 603-621.
  13. Jones, Melanie K. & Jones, Richard J. & Murphy, Philip D. & Sloane, Peter J., 2005. "The Dynamics of the National Minimum Wage: Transitions Between Different Labour Market States," IZA Discussion Papers 1690, Institute for the Study of Labor (IZA).

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