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.
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- David Neumark & Olena Nizalova, 2007.
"Minimum Wage Effects in the Longer Run,"
Journal of Human Resources,
University of Wisconsin Press, vol. 42(2).
- David Neumark & Olena Nizalova, 2004. "Minimum Wage Effects in the Longer Run," NBER Working Papers 10656, National Bureau of Economic Research, Inc.
- 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.
- Neumark, David & Nizalova, Olena Y., 2004. "Minimum Wage Effects in the Longer Run," IZA Discussion Papers 1428, Institute for the Study of Labor (IZA).
- John M. Abowd & Francis Kramarz & Thomas Lemieux & David N. Margolis, 2000.
"Minimum Wages and Youth Employment in France and the United States,"
in: Youth Employment and Joblessness in Advanced Countries, pages 427-472
National Bureau of Economic Research, Inc.
- 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.
- FougÃ¨re & Kramarz & Thierry Magnac, 2000.
"Youth employment policies in France,"
156232, Institut National de la Recherche Agronomique, France.
- Walter J. Wessels, 2005. "Does the Minimum Wage Drive Teenagers Out of the Labor Force?," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 169-176, January.
- 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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