Volume 26, Number 1 (Winter) 1991
Wellington, Alison J. 1991. "Effects of the Minimum Wage on the Employment Status of Youths: An Update." Journal of Human Resources 26(1):27-46.
The large decline in the relative value of the minimum wage during the 1980s makes that period a valuable one for identifying the impact of variation in the minimum wage on youth employment. This study produces the robust finding that, when the experience of the 1980s is included, a 10 percent increase in the minimum wage is estimated to reduce teen employment by less than 1 percent - the lower end of the range of previous estimates. Because this small employment effect is offset by a labor force withdrawal effect, the study finds no discernable effect on measured unemployment. The study also finds no apparent effect of the minimum wage on the employment of young adults aged 20-24.
The author is an assistant professor in economics at Davidson College. This research was partially funded by a NICHD Graduate Fellowship in Economic Demography. She would like to thank Charles Brown, Gary Solon, and two anonymous referees for their insightful comments and helpful suggestions. She takes responsibility for any remaining errors. The data used in this article can be obtained from the author between August 1991 and August 1994 at the following address: Department of Economics, Davidson College, Davidson, North Carolina 28036.
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