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The Response of Hours of Work to Increases in the Minimum Wage

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  • Kenneth A. Couch
  • David C. Wittenburg

Abstract

This paper examines the effect of minimum wage increases on the hours of work of teenagers (ages 16 to 19) using monthly data from the Current Population Survey. Our findings are consistent with the prediction from neoclassical theory that minimum wage increases have a negative effect on labor demand. However, the estimates we provide here for the elasticity of hours of teen labor demanded with respect to the minimum wage suggest that alternative estimates based on aggregate employment consistently understate the total impact of minimum wage increases on teenage labor utilization.

Suggested Citation

  • Kenneth A. Couch & David C. Wittenburg, 2001. "The Response of Hours of Work to Increases in the Minimum Wage," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 171-177, July.
    • Handle: RePEc:wly:soecon:v:68:y:2001:i:1:p:171-177
    DOI: 10.1002/j.2325-8012.2001.tb00406.x
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    References listed on IDEAS

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    1. David Neumark & William Wascher, 1992. "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws," ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
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    1. Paul Redmond & Elisa Staffa & Seamus McGuinness, 2025. "A Comparison of Approaches for Identifying Minimum Wage Workers: Direct Question Versus Administrative Earnings Data," British Journal of Industrial Relations, London School of Economics, vol. 63(4), pages 616-630, December.
    2. Paul Redmond & Seamus McGuinness, 2025. "The impact of a minimum wage increase on hours worked: heterogeneous effects by gender and sector," Economica, London School of Economics and Political Science, vol. 92(365), pages 84-106, January.
    3. Mario Bossler & Ying Liang & Thorsten Schank, 2024. "The Devil is in the Details: Heterogeneous Effects of the German Minimum Wage on Working Hours and Minijobs," Papers 2403.17206, arXiv.org, revised May 2024.
    4. Fone, Zachary S. & Sabia, Joseph J. & Cesur, Resul, 2023. "The unintended effects of minimum wage increases on crime," Journal of Public Economics, Elsevier, vol. 219(C).
    5. Redmond, Paul & McGuinness, Seamus, 2022. "Heterogeneous effects of a minimum wage increase on hours worked," Research Series, Economic and Social Research Institute (ESRI), number RS132.
    6. OH, Taehee & LEE, Jangyoun, 2025. "Behind the Elusive Employment Effect of the Minimum Wage : A Regression Discontinuity Approach," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 66(2), pages 132-160, December.
    7. Arindrajit Dube & Attila Lindner, 2024. "Minimum Wages in the 21st Century," RFBerlin Discussion Paper Series 2425, ROCKWOOL Foundation Berlin (RFBerlin).
    8. Clemens, Jeffrey & Strain, Michael R., 2026. "The heterogeneous effects of large and small minimum wage changes on hours worked: Evidence using a partially pre-committed analysis plan," Economics Letters, Elsevier, vol. 262(C).
    9. Loukas Karabarbounis & Jeremy Lise & Anusha Nath, 2022. "Minimum Wages and Labor Markets in the Twin Cities," Working Papers 793, Federal Reserve Bank of Minneapolis.
    10. Dao, Ngoc, 2024. "Federal minimum wage expansion to homecare workers: Employment and income effects," Labour Economics, Elsevier, vol. 87(C).
    11. Kim, Ji Hwan & Lee, Jungmin & Lee, Kyungho, 2023. "Minimum wage, social insurance mandate, and working hours," Journal of Public Economics, Elsevier, vol. 225(C).
    12. David Neumark & Peter Shirley, 2022. "Myth or measurement: What does the new minimum wage research say about minimum wages and job loss in the United States?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 384-417, October.
    13. Mario Bossler & Hans-Dieter Gerner, 2020. "Employment Effects of the New German Minimum Wage: Evidence from Establishment-Level Microdata," ILR Review, Cornell University, ILR School, vol. 73(5), pages 1070-1094, October.
    14. Bossler, Mario & Liang, Ying & Schank, Thorsten, 2026. "The devil is in the details: Heterogeneous effects of the German minimum wage on working hours and minijobs," Journal of Public Economics, Elsevier, vol. 253(C).

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