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Minimum Wages, Market Inflexibilities, and Female Employment in Select OECD Countries

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  • Ozturk, orgul

Abstract

Using international and intertemporal variations in minimum wages, employment protection laws, minimum wage regulations and female work behavior within the OECD, empirical analysis provide evidence that higher minimum wages are associated with lower female labor force participation and employment. This association is more significant in countries with more stringent employment protection laws, lower female tertiary educational enrollment and higher fertility. In addition to the extensive margin analysis, it is shown that minimum wage levels are positively correlated with the ratio of part-time workers. That is, minimum wages are associated with not only lower participation and employment rates among women but also with higher marginalization of female work. This association is stronger in countries with more inflexible labor markets and less active labor market policies. Moreover, existence of a subminimum wage for youths implies further reduction of employment while increasing part-time job incidence for females, when the minimum wage increases.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10222.

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Date of creation: 26 Dec 2006
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Handle: RePEc:pra:mprapa:10222

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Keywords: Labor market regulations; female work; minimum wage; OECD; time series data;

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  1. Boeri, Tito, 1999. "Enforcement of employment security regulations, on-the-job search and unemployment duration," European Economic Review, Elsevier, Elsevier, vol. 43(1), pages 65-89, January.
  2. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 20(2), pages 487-528, June.
  3. Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," CEP Discussion Papers, Centre for Economic Performance, LSE dp0183, Centre for Economic Performance, LSE.
  4. Paul Geroski & Paul Gregg & John van Reenen, 1995. "Market Imperfections and Employment," OECD Jobs Study Working Papers, OECD Publishing 5, OECD Publishing.
  5. Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers, Centre for Economic Performance, LSE dp0407, Centre for Economic Performance, LSE.
  6. Ronald G. Ehrenberg & Alan J. Marcus, 1982. "Minimum Wages and Teenagers' Enrollment-Employment Outcomes: A Multinomial Logit Model," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 39-58.
  7. David T. Ellwood, 1982. "Teenage Unemployment: Permanent Scars or Temporary Blemishes?," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 349-390 National Bureau of Economic Research, Inc.
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