Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis
By David Neumark, William L. Wascher. 2003
275 citations recorded by the source corpus.
The authors estimate the employment effects of changes in national minimum wages using a pooled cross-section time-series data set comprising 17 OECD countries for the period 1975–2000. The average effects they find are consistent with the view that minimum wages cause employment losses among youths. However, the evidence also shows considerable variation across countries. In particular, disemployment effects of minimum wages appear to be smaller in countries that have subminimum wage provisions for youths. Regarding other labor market policies and institutions, the authors find that more restrictive labor standards and higher union coverage strengthen the disemployment effects of minimum wages, while employment protection laws and active labor market policies designed to bring unemployed individuals into the work force help to offset these effects. Overall, the disemployment effects of minimum wages are strongest in the countries with the least regulated labor markets.
Subfields: Economics and Econometrics, General Health Professions
View Paper: https://www.semanticscholar.org/paper/030510e37f5b3ce1e8b1d7caf87a051a214b72cc
How researchers see this paper
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In Economics and Econometrics
- Yann Algan
- Pierre Cahuc
- Philippe Aghion
- Margherita Comola
- Luiz de Mello
- Christian Bjørnskov
- Claudia Senik
- Peter Howitt
In General Health Professions
Citations in the corpus
- Does the UK Minimum Wage Reduce Employment? A Meta‐Regression Analysis (2014, unknown): “Secondly, with the exception of one paper, (Neumark and Wascher, 2004), researchers in this field do not believe that it is appropriate to include the unemployment rate in the employment equation.”
- How Does Decentralized Minimum Wage Setting Affect Employment and Informality? The Case of Indonesia (2011, methodology): “But in many crosssectional studies the estimated employment elasticity of the minimum wage is statistically insignificant or even positive (Card, 1992; Neumark and Wascher, 1992; Card and Krueger, 1995; Bazen and Skourias, 1997; Bell, 1997; Burkhauser et al., 2000; Neumark and Wascher, 2004).”
- Revisiting the Minimum Wage—Employment Debate: Throwing Out the Baby with the Bathwater? (2014, unknown): “It is standard practice to assess the robustness of panel data estimates of state policy effects to the inclusion of state- specific trends, including in the minimum wage literature (e.g., Neumark and Wascher 2004, 2011).”
- Civil Society And The State: The Interplay Between Cooperation And Minimum Wage Regulation (2011, methodology): “We thus complete these data by using Neumark and Wascher (2004) s indicators for other countries.”