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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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File URL: http://jhr.uwpress.org/cgi/reprint/XLII/2/435
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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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  1. Neumark, David & Wascher, William, 2003. "Minimum wages and skill acquisition: another look at schooling effects," Economics of Education Review, Elsevier, vol. 22(1), pages 1-10, February.
  2. Daron Acemoglu & Jorn-Steffen Pischke, 2002. "Minimum wages and on-the-job training," LSE Research Online Documents on Economics 20084, London School of Economics and Political Science, LSE Library.
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  6. David Neumark & Mark Schweitzer & William Wascher, 2005. "The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 867-894.
  7. David Neumark & William Wascher, 1995. "The Effects of Minimum Wages on Teenage Employment and Enrollment: Evidence from Matched CPS Surveys," NBER Working Papers 5092, National Bureau of Economic Research, Inc.
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  27. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, December.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Youth unemployment
    by Eric Crampton in Offsetting Behaviour on 2010-05-06 02:39:00
  2. Minimum wages and the young
    by chris dillow in Stumbling and Mumbling on 2007-03-19 12:49:35
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