IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v71y2018i3p647-675.html
   My bibliography  Save this article

Do Minimum Wages Lead to Job Losses? Evidence from OECD Countries on Low-Skilled and Youth Employment

Author

Listed:
  • Simon Sturn

Abstract

The author investigates effects of minimum wage rates on low-skilled, female low-skilled, and youth employment. The sample consists of 19 Organisation for Economic Co-operation and Development (OECD) countries from 1997 to 2013 for low-skilled workers and from 1983 to 2013 for young workers. Six different static or dynamic estimation approaches are applied on different versions of the specifications, controlling for up to quadratic time trends. The author further investigates the effects over the long run and over the business cycle as well as the effects of high minimum wages and of institutional complementarities. The findings provide little evidence of substantial disemployment effects for low-skilled, female low-skilled, or young workers. The estimated employment elasticities are small and statistically indistinguishable from zero. The author then considers why his results on youth employment differ from those of Neumark and Wascher (2004), showing that they overstate precision and that small changes in their specifications lead to minimum wage effects close to zero.

Suggested Citation

  • Simon Sturn, 2018. "Do Minimum Wages Lead to Job Losses? Evidence from OECD Countries on Low-Skilled and Youth Employment," ILR Review, Cornell University, ILR School, vol. 71(3), pages 647-675, May.
    • Handle: RePEc:sae:ilrrev:v:71:y:2018:i:3:p:647-675
    as

    Download full text from publisher

    File URL: http://ilr.sagepub.com/content/71/3/647.abstract
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monika Köppl-Turyna & Michael Christl & Dénes Kucsera, 2019. "Employment Effects of Minimum Wages: the Dose Makes the Poison," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(02), pages 40-46, January.
    2. Stefan Ederer & Josef Baumgartner & Marian Fink & Serguei Kaniovski & Christine Mayrhuber & Silvia Rocha-Akis, 2017. "Effekte der Einführung eines flächendeckenden Mindestlohnes in Österreich," WIFO Studies, WIFO, number 60570, April.
    3. Micheli, Martin, 2020. "It is real: On the relation between minimum wages and labor market outcomes for teenagers," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224597, Verein für Socialpolitik / German Economic Association.
    4. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    5. Michael Christl & Monika Köppl-Turyna & Dénes Kucsera, 2019. "Employment Effects of Minimum Wages," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 16(04), pages 01-08, January.
    6. Micheli, Martin, 2019. "It is real: On the relation between minimum wages and labor market outcomes for teenagers," Ruhr Economic Papers 829, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Kimitaka Nishitani & Akira Kawaguchi, 2022. "Mitigating Gender Inequality in the Workplace: Toward Sustainable Development Through Institutional Changes," Discussion Paper Series DP2022-07, Research Institute for Economics & Business Administration, Kobe University, revised May 2022.
    8. Sigaud, Liam & Daley, Angela & Rubin, Jonathan & Noblet, Caroline, 2022. "The effects of recent minimum wage increases on self-reported health in the United States," Social Science & Medicine, Elsevier, vol. 305(C).
    9. SATO Kazuma, 2021. "The Impact of the Minimum Wage Increase on Subjective Wellbeing: Evidence from Japan," Discussion papers 21075, Research Institute of Economy, Trade and Industry (RIETI).
    10. repec:ces:ifodic:v:16:y:2019:i:4:p:50000000004800 is not listed on IDEAS
    11. Pantea, Smaranda, 2020. "The effect of minimum wage hikes on employment: Evidence from regional panel data from Romania," Economic Systems, Elsevier, vol. 44(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:71:y:2018:i:3:p:647-675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.