Labor Market Connections, Minimum Wages, and Youth Employment
We construct a labor search model where individuals can be either connected or unconnected. Connected workers get a higher rate of job oﬀers when unemployed and are separated from their jobs at a lower rate than unconnected workers. Unconnected workers can become connected through employment. This model can account for age patterns in employment data. By introducing minimum wages, the model explains empirical ﬁndings on the eﬀects of minimum wage laws. Finally, the model shows that minimum wages account for a large part of the diﬀerences in youth employment between Europe and the United States.
|Date of creation:||2008|
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156232, Institut National de la Recherche Agronomique, France.
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"Minimum Wage Effects in the Longer Run,"
NBER Working Papers
10656, National Bureau of Economic Research, Inc.
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- David Neumark & Olena Nizalova, 2006. "Minimum Wage Effects in the Longer Run," Working Papers 050626, University of California-Irvine, Department of Economics.
- David Neumark & Olena Nizalova, 2004. "Minimum Wage Effects in the Longer Run," PPIC Working Papers 2004.03, Public Policy Institute of California.
- John M. Abowd & Francis Kramarz & Thomas Lemieux & David N. Margolis, 1997.
"Minimum Wages and Youth Employment in France and the United States,"
NBER Working Papers
6111, National Bureau of Economic Research, Inc.
- John M. Abowd & Francis Kramarz & Thomas Lemieux & David N. Margolis, 2000. "Minimum Wages and Youth Employment in France and the United States," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 427-472 National Bureau of Economic Research, Inc.
- 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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