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Minimum Wage Effects in the Longer Run Author info | Abstract | Publisher info | Download info | Related research | Statistics David Neumark
Olena Nizalova
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Exposure to minimum wages at young ages may lead to longer-run effects. Among the possible adverse longer-run effects are decreased labor market experience and accumulation of tenure, lower current labor supply because of lower wages, and diminished training and skill acquisition. Beneficial longer-run effects could arise if minimum wages increase skill acquisition, or if short-term wage increases are long-lasting. We estimate the longer-run effects of minimum wages by using information on the minimum wage history that workers have faced since potentially entering the labor market. The evidence indicates that even as individuals reach their late 20's, they work less and earn less the longer they were exposed to a higher minimum wage, especially as a teenager. The adverse longer-run effects of facing high minimum wages as a teenager are stronger for blacks. From a policy perspective, these longer-run effects of minimum wages are likely more significant than the contemporaneous effects of minimum wages on youths that are the focus of most research and policy debate.
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Date of creation: Jul 2004Date of revision:
Handle: RePEc:nbr:nberwo:10656Note: LSContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
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Article Paper Neumark, David & Nizalova, Olena, 2004.
"Minimum Wage Effects in the Longer Run ,"
IZA Discussion Papers
1428, Institute for the Study of Labor (IZA).
[Downloadable!] David Neumark & Olena Nizalova, 2004.
"Minimum Wage Effects in the Longer Run ,"
PPIC Working Papers
2004.03, Public Policy Institute of California.
David Neumark & Olena Nizalova, 2006.
"Minimum Wage Effects in the Longer Run ,"
Working Papers
050626, University of California-Irvine, Department of Economics.
[Downloadable!] Find related papers by JEL classification: J2 - Labor and Demographic Economics - - Demand and Supply of Labor J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , 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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