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Minimum Wages, Labor Market Institutions, and Female Employment

  • 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)

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.

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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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Paper provided by Institute for Advanced Studies in its series Economics Series with number 278.

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Length: 53 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:ihs:ihsesp:278
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  1. Juan Dolado & Francis Kramarz & Steven Machin & Alan Manning & David Margolis & Coen Teulings, 1996. "The Economic Impact of Minimum Wages in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00353896, HAL.
  2. John T. Addison & Paulino Teixeira, 2009. "Are Good Industrial Relations Good for the Economy?," German Economic Review, Verein für Socialpolitik, vol. 10, pages 253-269, 08.
  3. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, UCLA, 2010. "Family Values and the Regulation of Labor," Working Papers 2010.56, Fondazione Eni Enrico Mattei.
  4. John T. Addison & Paulino Teixeira, 2003. "The Economics of Employment Protection," Journal of Labor Research, Transaction Publishers, vol. 24(1), pages 85-129, January.
  5. Olivier Blanchard & Thomas Philippon, 2004. "The Quality of Labor Relations and Unemployment," NBER Working Papers 10590, National Bureau of Economic Research, Inc.
  6. Horst Feldmann, 2007. "Protestantism, Labor Force Participation, and Employment," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(4), pages 795-816, October.
  7. 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.
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