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Minimum Wages, Labor Market Institutions, and Female Employment

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  • Addison, John T.

    (Department of Economics, Moore School of Business, University of South Carolina, Columbia, USA)

  • Ozturk, Orgul Demet

    (Department of Economics, Moore School of Business, University of South Carolina, Columbia, USA)

Abstract

The authors investigate the employment consequences of minimum wage regulation in 16 OECD countries, 1970-2008. Their treatment is motivated by Neumark and Wascher’s (2004) seminal cross-country study. Apart from the longer time interval examined, a major departure is the authors’ focus on prime-age females, a group often neglected in the minimum wage literature. Another is their deployment of time-varying policy and institutional regressors. The average effects they report are consistent with minimum wages causing material employment losses among the target group. Their secondary finding is that minimum wage increases are more associated with (reduced) participation rates than with elevated joblessness. Further, although the authors find common ground with Neumark and Wascher as regards the role of some individual labor market institutions and policies, they do not observe the same patterns in the institutional data. Specifically, prime-age females do not exhibit stronger employment losses in countries with the least regulated markets.

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File URL: http://www.ihs.ac.at/publications/eco/es-278.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Institute for Advanced Studies in its series Economics Series with number 278.

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Length: 53 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:ihs:ihsesp:278

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Related research

Keywords: Minimum wages; minimum wage institutions; prime-age females; disemployment; participation; unemployment; employment protection; labor standards; labor market policies; unions;

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References

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  1. Addison, John T. & Teixeira, Paulino, 2001. "The Economics of Employment Protection," IZA Discussion Papers 381, Institute for the Study of Labor (IZA).
  2. Common, MS, 1994. "Taxation and the environment: Complementary policies : Organization for Economic Cooperation and Development Paris, Organization for Economic Cooperation and Development, 1993, reprinted 1994, 116 pp," Resources Policy, Elsevier, vol. 20(4), pages 281-281, December.
  3. John T. Addison & Paulino Teixeira, 2009. "Are Good Industrial Relations Good for the Economy?," German Economic Review, Verein für Socialpolitik, vol. 10, pages 253-269, 08.
  4. Horst Feldmann, 2007. "Protestantism, Labor Force Participation, and Employment," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(4), pages 795-816, October.
  5. Olivier Blanchard & Thomas Philippon, 2004. "The Quality of Labor Relations and Unemployment," NBER Working Papers 10590, National Bureau of Economic Research, Inc.
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Cited by:
  1. Muravyev, Alexander & Oshchepkov, Aleksey, 2013. "Minimum Wages, Unemployment and Informality: Evidence from Panel Data on Russian Regions," IZA Discussion Papers 7878, Institute for the Study of Labor (IZA).
  2. Kato, Takao & Kodama, Naomi, 2014. "Labor Market Deregulation and Female Employment: Evidence from a Natural Experiment in Japan," IZA Discussion Papers 8189, Institute for the Study of Labor (IZA).
  3. Bredemeier, Christian & Juessen, Falko, 2012. "Minimum Wages and Female Labor Supply in Germany," IZA Discussion Papers 6892, Institute for the Study of Labor (IZA).

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