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Minimum Wages, Labor Market Institutions, and Female Employment

Author

Listed:
  • Addison, John T.

    (Department of Economics, Moore School of Business, University of South Carolina, Columbia, USA)

  • Ozturk, Orgul Demet

    (Department of Economics, Moore School of Business, University of South Carolina, Columbia, USA)

Abstract

The authors investigate the employment consequences of minimum wage regulation in 16 OECD countries, 1970-2008. Their treatment is motivated by Neumark and Wascher’s (2004) seminal cross-country study. Apart from the longer time interval examined, a major departure is the authors’ focus on prime-age females, a group often neglected in the minimum wage literature. Another is their deployment of time-varying policy and institutional regressors. The average effects they report are consistent with minimum wages causing material employment losses among the target group. Their secondary finding is that minimum wage increases are more associated with (reduced) participation rates than with elevated joblessness. Further, although the authors find common ground with Neumark and Wascher as regards the role of some individual labor market institutions and policies, they 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

  • Addison, John T. & Ozturk, Orgul Demet, 2011. "Minimum Wages, Labor Market Institutions, and Female Employment," Economics Series 278, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:278
    as

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    File URL: http://www.ihs.ac.at/publications/eco/es-278.pdf
    File Function: First version, 2011
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    References listed on IDEAS

    as
    1. Juan Dolado & Francis Kramarz & Steven Machin & Alan Manning & David Margolis & Coen Teulings, 1996. "The Economic Impact of Minimum Wages in Europe," Post-Print halshs-00353896, HAL.
    2. John T. Addison & Paulino Teixeira, 2003. "The Economics of Employment Protection," Journal of Labor Research, Transaction Publishers, vol. 24(1), pages 85-129, January.
    3. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, August.
    4. John T. Addison & Paulino Teixeira, 2009. "Are Good Industrial Relations Good for the Economy?," German Economic Review, Verein für Socialpolitik, vol. 10(3), pages 253-269, August.
    5. Olivier Blanchard & Thomas Philippon, 2004. "The Quality of Labor Relations and Unemployment," NBER Working Papers 10590, National Bureau of Economic Research, Inc.
    6. Common, MS, 1994. "Taxation and the environment: Complementary policies : Organization for Economic Cooperation and Development Paris, Organization for Economic Cooperation and Development, 1993, reprinted 1994, 116 pp," Resources Policy, Elsevier, vol. 20(4), pages 281-281, December.
    7. John T. Addison & Paulino Teixeira, 2009. "Are Good Industrial Relations Good for the Economy?," German Economic Review, Verein für Socialpolitik, vol. 10(3), pages 253-269, August.
    8. repec:rim:rimwps:28-07 is not listed on IDEAS
    9. Horst Feldmann, 2007. "Protestantism, Labor Force Participation, and Employment Across Countries," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(4), pages 795-816, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Muravyev, Alexander & Oshchepkov, Aleksey, 2013. "Minimum Wages, Unemployment and Informality: Evidence from Panel Data on Russian Regions," IZA Discussion Papers 7878, Institute of Labor Economics (IZA).
    2. Kato, Takao & Kodama, Naomi, 2014. "Labor Market Deregulation and Female Employment: Evidence from a Natural Experiment in Japan," IZA Discussion Papers 8189, Institute of Labor Economics (IZA).
    3. Michael Christl & Monika Köppl‐Turyna & Dénes Kucsera, 2018. "Revisiting the Employment Effects of Minimum Wages in Europe," German Economic Review, Verein für Socialpolitik, vol. 19(4), pages 426-465, November.
    4. Lawrence M. Kahn, 2015. "Wage compression and the gender pay gap," IZA World of Labor, Institute of Labor Economics (IZA), pages 150-150, April.
    5. 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.
    6. Bredemeier, Christian & Juessen, Falko, 2012. "Minimum Wages and Female Labor Supply in Germany," IZA Discussion Papers 6892, Institute of Labor Economics (IZA).
    7. Adam Brzezinski, 2017. "Synergies in Labour Market Institutions: the Nonlinear Effect of Minimum Wages on Youth Employment," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(2), pages 251-263, June.

    More about this item

    Keywords

    Minimum wages; minimum wage institutions; prime-age females; disemployment; participation; unemployment; employment protection; labor standards; labor market policies; unions;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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