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Minimum Wage and Youth Employment The Case Study of Iran's Manufacturing Industries

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  • Ahmad Jafari Samimi

Abstract

The purpose of this paper is to examine the effect of minimum wage on the youth employment using panel technique in Iran’s manufacturing industries at the 4-digit aggregation level of ISIC classification, during 2001-2006. There is the controversy surrounding minimum wage because the effects of the introduction and increase of minimum wage may differ greatly depending on the labor market structure. In order to capture the effects which various un-observed labor supply and demand factors may have on the youth employment, The Kaitz Index (as the ratio of the minimum wage to the average wage) has been used in our analysis. The obtained results provide the small but positive effect of minimum wage on youth employment.

Suggested Citation

  • Ahmad Jafari Samimi, 2011. "Minimum Wage and Youth Employment The Case Study of Iran's Manufacturing Industries," Journal of Education and Vocational Research, AMH International, vol. 1(2), pages 38-43.
  • Handle: RePEc:rnd:arjevr:v:1:y:2011:i:2:p:38-43
    DOI: 10.22610/jevr.v1i2.7
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