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, I examine the firm’s response to the 1996 federal minimum wage increase. Compulsory increases in average wages had negative but statistically insignificant effects on overall employment. However, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, especially younger and more affluent teenagers. Further analysis suggests a pattern consistent with non-competitive models. Where the legislation affected mainly the wages of teenagers and so was only moderately binding, it led both to higher teenage labor market participation and to higher absolute employment of teenagers.
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Bibliographic InfoPaper provided by University of Miami, Department of Economics in its series Working Papers with number 2011-12.
Length: 52 pages
Date of creation: 2011
Date of revision:
Publication status: Forthcoming: Under Review
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More information through EDIRC
minimum wage; employment; teenage employment;
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, 2009. "Minimum wage effects on employment, substitution, and the teenage labor supply: Evidence from personnel data," Working Papers 2010-5, 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-17 (All new papers)
- NEP-LAB-2012-04-17 (Labour Economics)
- NEP-LMA-2012-04-17 (Labor Markets - Supply, Demand, & Wages)
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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
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