Minimum wage effects on employment, substitution, and the teenage labor supply: Evidence from personnel data
AbstractUsing personnel data from a large U.S. retail firm with more than 700 stores nationwide, this study examines the firm’s response to the 1996 federal minimum wage increase. First, increases in average wages had negative, but statistically insignificant effects on overall employment. Second, however, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, and especially of more productive teenagers from affluent ZIP codes. This second result is consistent with models that link labor demand to labor market participation, and in particular suggests informational asymmetries may be important in the teenage labor market.
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Bibliographic InfoPaper provided by University of Miami, Department of Economics in its series Working Papers with number 2010-5.
Length: 52 pages
Date of creation: Sep 2009
Date of revision:
Publication status: Published
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Other versions of this item:
- Laura Giuliano, 2013. "Minimum Wage Effects on Employment, Substitution, and the Teenage Labor Supply: Evidence from Personnel Data," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 155 - 194.
- Laura Giuliano, 2011. "Minimum Wage Effects on Employment, Substitution, and the Teenage Labor Supply: Evidence from Personnel Data," Working Papers 2011-12, University of Miami, Department of Economics.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Raising the Minimum Wage to $9 Would Harm Most Vulnerable Job Seekers
by James Sherk in The Foundry on 2013-04-12 17:00:46
- Alan Manning, 2010.
"Imperfect Competition in the Labour Market,"
CEP Discussion Papers
dp0981, Centre for Economic Performance, LSE.
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"Minimum wage, fringe benefits, overtime payments and the gender wage gap,"
NIPE Working Papers
34/2010, NIPE - Universidade do Minho.
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Elsevier, vol. 23(C), pages 30-39.
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