IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v74y2021i4p1008-1035.html
   My bibliography  Save this article

Happy Birthday, You’re Fired! Effects of an Age-Dependent Minimum Wage on Youth Employment Flows in the Netherlands

Author

Listed:
  • Jan Kabátek

Abstract

The Dutch minimum wage for workers aged 15 to 23 is defined as a stepwise increasing function of a worker’s calendar age. Using Dutch administrative records, the author shows that the birthday discontinuities of age-dependent minimum wage rates affect both labor market entry (job accessions) and labor market exit (job separations) of minimum wage workers. The job separations spike in the three months that precede workers’ birthdays, suggesting that firms are dismissing workers whose costs are about to go up. The frequency of job accessions increases immediately after the birthdays and the increase is sustained throughout the following months. The resulting effect on employment levels is dynamic, with the employment rate being subject to an initial drop that is gradually compensated for by the higher rates of post-birthday labor market entry.

Suggested Citation

  • Jan Kabátek, 2021. "Happy Birthday, You’re Fired! Effects of an Age-Dependent Minimum Wage on Youth Employment Flows in the Netherlands," ILR Review, Cornell University, ILR School, vol. 74(4), pages 1008-1035, August.
    • Handle: RePEc:sae:ilrrev:v:74:y:2021:i:4:p:1008-1035
    DOI: 10.1177/0019793919897914
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0019793919897914
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0019793919897914?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:74:y:2021:i:4:p:1008-1035. 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.