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Minimum Wages and Youth Employment

Listed author(s):
  • Gorry, Aspen

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.

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File URL: https://mpra.ub.uni-muenchen.de/25296/1/MPRA_paper_25296.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25296.

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Date of creation: 24 Jun 2010
Handle: RePEc:pra:mprapa:25296
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  9. Bazen, Stephen & Skourias, Nicolas, 1997. "Is there a negative effect of minimum wages on youth employment in France?," European Economic Review, Elsevier, vol. 41(3-5), pages 723-732, April.
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  25. International Labour Office., 2013. "Global employment trends for youth 2013 : a generation at risk," Global Employment Trends Reports 994816973402676, International Labour Office, Economic and Labour Market Analysis Department.
  26. John M. Abowd & Francis Kramarz & Thomas Lemieux & David Margolis, 2000. "Minimum Wages and Youth Employment in France and the United States," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00354400, HAL.
  27. Robert Shimer, 2007. "Reassessing the Ins and Outs of Unemployment," NBER Working Papers 13421, National Bureau of Economic Research, Inc.
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  42. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, December.
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