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Minimum Wages and Youth Employment

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  • Gorry, Aspen

Abstract

Significant employment differences between the US and Europe are concentrated among young workers. This paper constructs a labor search model that accounts for age patterns of employment. Work experience reduces the probability that workers lose their jobs. By introducing minimum wages, the model explains empirical findings on the effects of minimum wage laws. In addition, the model shows that minimum wages can account for about half of the differences in youth employment between Europe and the United States.

Suggested Citation

  • Gorry, Aspen, 2010. "Minimum Wages and Youth Employment," MPRA Paper 25296, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25296
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    References listed on IDEAS

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    More about this item

    Keywords

    Minimum wages; youth employment; France; United States;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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