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Minimum Wages, Labor Market Institutions, and Female Employment: A Cross-Country Analysis

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  • John T. Addison
  • Orgul Demet Ozturk

Abstract

The authors investigate the employment consequences of minimum wage regulation for women in 16 OECD countries during 1970 to 2008. The treatment follows that of Neumark and Wascher's (2004) cross-country study using panel methods to estimate minimum wage effects among teenagers and young adults, although they focus on prime-age females—a group often neglected in the minimum wage literature. Moreover, their analysis covers a longer time interval and deploys time-varying policy and institutional regressors. They report average effects consistent with minimum wages causing material employment losses among the target group and, less conclusively, elevated joblessness as well. Their cross-country findings agree with Neumark and Wascher on the role of some individual labor market institutions and policies, but the authors do not observe the same patterns in the institutional data: specifically, prime-age females do not exhibit stronger employment losses in countries with the least regulated markets.

Suggested Citation

  • John T. Addison & Orgul Demet Ozturk, 2012. "Minimum Wages, Labor Market Institutions, and Female Employment: A Cross-Country Analysis," ILR Review, Cornell University, ILR School, vol. 65(4), pages 779-809, October.
  • Handle: RePEc:sae:ilrrev:v:65:y:2012:i:4:p:779-809
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    Cited by:

    1. Chletsos, Michael & Giotis, Georgios P., 2015. "The impact of minimum wage on employment in an economic downturn using data from 17 OECD countries for the period 1985-2008," MPRA Paper 61323, University Library of Munich, Germany.
    2. Balázs Égert & Peter Gal, 2017. "The quantification of structural reforms in OECD countries: A new framework," OECD Journal: Economic Studies, OECD Publishing, vol. 2016(1), pages 91-108.
    3. repec:bla:germec:v:20:y:2019:i:3:p:257-292 is not listed on IDEAS
    4. David Neumark, 2017. "The Employment Effects of Minimum Wages: Some Questions We Need to Answer," NBER Working Papers 23584, National Bureau of Economic Research, Inc.
    5. Marco Caliendo & Carsten Schröder & Linda Wittbrodt, 2019. "The Causal Effects of the Minimum Wage Introduction in Germany – An Overview," German Economic Review, Verein für Socialpolitik, vol. 20(3), pages 257-292, August.
    6. Lawrence M. Kahn, 2015. "Wage compression and the gender pay gap," IZA World of Labor, Institute of Labor Economics (IZA), pages 150-150, April.
    7. Nidhiya Menon & Yana van der Meulen Rodgers, 2017. "The Impact of the Minimum Wage on Male and Female Employment and Earnings in India," Asian Development Review, MIT Press, vol. 34(1), pages 28-64, March.
    8. Sharon Katzkowicz & Gabriela Pedetti & Martina Querejeta & Marcelo Bérgolo, 2019. "Low-Skilled Workers and the Effects of Minimum Wage: New Evidence Based on a Density-Discontinuity Approach," Working Papers PMMA 2019-10, PEP-PMMA.

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