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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.

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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
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Handle: RePEc:pra:mprapa:25296
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Keywords: Minimum wages; youth employment; France; United States;

Other versions of this item:

Find related papers by 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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Full references (including those not matched with items on IDEAS)

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Minimum wages and youth unemployment
    by Economic Logician in Economic Logic on 2010-10-21 13:49:00
  2. Minimilöner och ungdomsarbetslöshet
    by Niclas Berggren in Nonicoclolasos on 2010-10-23 08:16:31
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:

  1. Isaac Sorkin, . "Are There Long-Run Effects of the Minimum Wage?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
  2. Sachs, Andreas & Smolny, Werner, 2014. "Youth unemployment in the OECD: The role of institutions," ZEW Discussion Papers 14-080, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

This item is featured on the following reading lists or Wikipedia pages:

  1. Economic Logic blog

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