Evidence on Employment Effects of Minimum Wages and Subminimum Wage Provisions From Panel Data on State Minimum Wage Laws
We construct a panel data set on state-level minimum wage laws and economic conditions to reevaluate existing evidence on minimum wage effects on employment, most of which comes from time-series data. Our estimates of the elasticities of teen and young-adult employment-to-population ratios fall primarily in the range -0.1 to -0.2, similar to the consensus range of estimates from time-series studies. We also find evidence that youth subminimum wage provisions enacted by state legislatures have moderated the disemployment effects of minimum wages.
|Date of creation:||Oct 1991|
|Date of revision:|
|Publication status:||published as Neumark, David and Wascher, William (2004) "Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis," Industrial & Labor Relations Review, Vol. 57, No. 2, article 4. p. 55-81|
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