Time-Series Evidence of the Effect of the Minimum Wage on Youth Employment and Unemployment
While previous time series studies have quite consistently found that the minimum wage reduces teenage employment, the extent of this reduction is much less certain. Moreover, because few previous studies report results of more than one specification, the causes of differences in estimated impacts are not well understood. Less consensus is evident on the effect of the minimum wage on teenage unemployment, or its relative impact on black and white teenagers. The purpose of this paper is both to update earlier work and to analyze the sensitivity of estimated minimum wage effects to alternative specification choices. In addition to providing estimates of the effect of minimum wage increases on aggregate employment and unemployment rates of teenagers, we explore several related issues: the relative importance of changing the level and coverage of the minimum wage; the timing of responses to a change in the minimum; effects on part-time and full-time work; effects on young adults (age 20-24).
|Date of creation:||Oct 1981|
|Date of revision:|
|Publication status:||published as Brown, Charles, Curtis Gilroy, and Andrew Kohen. "Time Series Evidence of the Effect of the Minimum Wage on Youth Employment and Unemployment." Journal of Human Resources, Vol. 18, No. 1 (Winter 1983), pp. 3-31.|
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- Mincer, Jacob, 1976. "Unemployment Effects of Minimum Wages," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S87-104, August.
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"Minimum Wages and the Demand for Labor,"
NBER Working Papers
0656, National Bureau of Economic Research, Inc.
- Ragan, James F, Jr, 1977. "Minimum Wages and the Youth Labor Market," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 129-36, May.
- Betsey, Charles L & Dunson, Bruce H, 1981. "Federal Minimum Wage Laws and the Employment of Minority Youth," American Economic Review, American Economic Association, vol. 71(2), pages 379-84, May.
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