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Minimum Wages and Human Capital Investment: A Meta-Regression Analysis

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  • Hristos Doucouliagos
  • Katarina Zigova

Abstract

We apply meta-regression analysis to assess the effect of the minimum wage on two types of human capital: 460 estimates of formal education enrolment and 428 estimates of on-the-job training. Raising the minimum wage reduces enrolment in all countries assessed. The minimum wage has a somewhat moderate positive effect on training in the US and a small positive training effect elsewhere. There is no publication bias in the formal education and modest bias in training literatures. Heterogeneity among reported estimates is primarily driven by alternative specifications and measures of the relevant variables and data differences.

Suggested Citation

  • Hristos Doucouliagos & Katarina Zigova, 2024. "Minimum Wages and Human Capital Investment: A Meta-Regression Analysis," Economics of Education Working Paper Series 0219, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0219
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    2. Katarina Zigova & Thomas Zwick, 2025. "Minimum Wages and Provision of Training," Economics of Education Working Paper Series 0242, University of Zurich, Department of Business Administration (IBW).

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    Keywords

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    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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