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The Effect of the Minimum Wage on Covered Teenage Employment

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  • Nicole Coomer
  • Walter Wessels

Abstract

Unlike previous studies on the minimum wage, which focused on its effect on total teenage employment, we examine its effect on covered employment. A covered job was defined to be one paying the minimum wage or more. Using contemporary wages to classify workers this way may inflate the estimated effect of minimum wages on covered employment. To avoid this bias, covered jobs are identified using a logit procedure run over years in which the minimum age was not increased. We find that minimum wages reduced covered employment significantly more than total employment. We also show that covered employment may be overstated in the period following an increase in the minimum wage. Copyright Springer Science+Business Media New York 2013

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  • Nicole Coomer & Walter Wessels, 2013. "The Effect of the Minimum Wage on Covered Teenage Employment," Journal of Labor Research, Springer, vol. 34(3), pages 253-280, September.
    • Handle: RePEc:spr:jlabre:v:34:y:2013:i:3:p:253-280
    DOI: 10.1007/s12122-013-9160-6
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    References listed on IDEAS

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    More about this item

    Keywords

    J08; J38;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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