Minimum Wages, Labor Market Institutions, and Female Employment
AbstractThe 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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Bibliographic InfoPaper provided by Institute for Advanced Studies in its series Economics Series with number 278.
Length: 53 pages
Date of creation: Dec 2011
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Find related papers by JEL classification:
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
- J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
- J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-CWA-2011-12-19 (Central & Western Asia)
- NEP-LAB-2011-12-19 (Labour Economics)
- NEP-LMA-2011-12-19 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2011-12-19 (Unemployment, Inequality & Poverty)
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