Effect of Minimum Wages on Human Capital Formation
The hypothesis that minimum wages tend to discourage on the job training is largely supported by our empirical analysis. Direct effects on reported job training and corollary effects on wage growth as estimated in microdata of the National Longitudinal Samples (NLS) and Michigan Income Dynamics (MID) are consistently negative and stronger at lower education levels. Apart from a single exception, no effects are observable among the higher wage group whose education exceeds high school. The effects on job turnover are: a decrease in turnover among young NLS whites, but an increase among young NLS blacks and MID whites. Whether these apparently conflicting findings on turnover reflect a distinction between short and long run adjustments in jobs is a question that requires further testing.
|Date of creation:||Feb 1980|
|Publication status:||published as Mincer, Jacob and Leighton, Linda. "Effect of Minimum Wages on Human Capital Formation." The Economy of Legal Minimum Wages, edited by S. Rottenberg. Washington, D.C.: American Enterprise Institute, 1981.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacob Mincer & Boyan Jovanovic, 1981.
"Labor Mobility and Wages,"
in: Studies in Labor Markets, pages 21-64
National Bureau of Economic Research, Inc.
- J. Wilson Mixon Jr., 1978. "The Minimum Wage and Voluntary Labor Mobility," ILR Review, Cornell University, ILR School, vol. 32(1), pages 67-73, October.
- Robert Swidinsky, 1980. "Minimum Wages and Teenage Unemployment," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 158-171, February.
- Michael L. Wachter & Choongsoo Kim, 1979. "Time Series Changes in Youth Joblessness," NBER Working Papers 0384, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0441. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.