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The Minimum Wage and the Employment of Youth: Evidence from the NLSY

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Janet Currie
Bruce Fallick

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Abstract

Using panel data on individuals from the National Longitudinal Survey of Youth, we find that employed individuals who were affected by the increases in the federal minimum wage in 1979 and 1980 were 3 to 4% less likely to be employed a year later, even after accounting for the fact that workers employed at the minimum wage may differ from their peers in unobserved ways. These results were obtained using a methodology similar in spirit 10 Card's recent work on the topic, although we use individual rather than state-level data, and an earlier time period.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4348.

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Date of creation: Apr 1993
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Handle: RePEc:nbr:nberwo:4348

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J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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  1. Natalya Y. Shelkova, 2008. "Low-Wage Labor Markets and the Power of Suggestion," Working papers 2008-33, University of Connecticut, Department of Economics, revised Dec 2008. [Downloadable!]
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  2. Fabio Veras Soares, 2005. "Minimum Wage Hikes And Employment Transitions In Brazil," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 164, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  3. C. J. Flinn, . "Interpreting Minimum Wage Effects on Wage Distributions: A Cautionary Tale," Institute for Research on Poverty Discussion Papers 1214-00, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  4. Mark D. Partridge, Jamie S. Partridge, 1999. "Do Minimum Wage Hikes Raise US Long Term Unemployment? Evidence Using State Minimum Wage Rates," Regional Studies, Taylor and Francis Journals, vol. 33(8), pages 713-726, November. [Downloadable!] (restricted)
  5. Horst Feldmann, 2005. "Labour Market Institutions and Labour Market Performance in Transition Countries," Post-Communist Economies, Taylor and Francis Journals, vol. 17(1), pages 47-82, March. [Downloadable!] (restricted)
  6. Amos Golan & Jeffrey Perloff & Ximing Wu, 2001. "Welfare Effects of Minimum Wage and Other Government Policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 957, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
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  7. Skedinger, Per, 2002. "Minimum wages and employment in Swedish hotels and restaurants," Working Paper Series 2002:18, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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  8. Stewart, Mark B., 2002. "The Impact Of The Introduction Of The Uk Minimum Wage On The Employment Probabilities Of Low Wage Workers," The Warwick Economics Research Paper Series (TWERPS) 630, University of Warwick, Department of Economics. [Downloadable!]
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  9. Christian Ragacs, 2003. "Mindestlöhne und Beschäftigung: Ein Überblick über die neuere empirische Literatur," Working Papers geewp25, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
  10. David Neumark, 2009. "Alternative Labor Market Policies to Increase Economic Self-Sufficiency: Mandating Higher Wages, Subsidizing Employment, and Increasing Productivity," NBER Working Papers 14807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Portugal, Pedro & Cardoso, Ana Rute, 2002. "Disentangling the Minimum Wage Puzzle: An Analysis of Worker Accessions and Separations," IZA Discussion Papers 544, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Hyslop, Dean & Stillman, Steven, 2004. "Youth Minimum Wage Reform and the Labour Market," IZA Discussion Papers 1091, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Lemos, Sara, 2004. "The Effects of the Minimum Wage in the Formal and Informal Sectors in Brazil," IZA Discussion Papers 1089, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Madeline Zavodny, 1998. "Why minimum wage hikes may not reduce employment," Economic Review, Federal Reserve Bank of Atlanta, issue Q 2, pages 18-28. [Downloadable!]
  15. Lemos, Sara, 2004. "Are Wage and Employment Effects Robust to Alternative Minimum Wage Variables?," IZA Discussion Papers 1070, Institute for the Study of Labor (IZA). [Downloadable!]
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  16. Richard V. Burkhauser & Kosali I. Simon, 2007. "Who Gets What from Employer Pay or Play Mandates?," NBER Working Papers 13578, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Maloney, William F. & Nunez, Jairo & Cunningham, Wendy & Fiess, Norbert & Montenegro, Claudio & Murrugarra, Edmundo & Santamaria,Mauricio & Sepulveda, Claudia, 2001. "Measuring the impact of minimum wages : evidence from Latin America," Policy Research Working Paper Series 2597, The World Bank. [Downloadable!]
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  18. David Neumark & Mark Schweitzer & William Wascher, 1999. "The effects of minimum wages throughout the wage distribution," Working Paper 9919, Federal Reserve Bank of Cleveland. [Downloadable!]
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  19. David Neumark, 1999. "The Employment Effects of Recent Minimum Wage Increases: Evidence from a Pre-specified Research Design," NBER Working Papers 7171, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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