Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws
- 1 October 1992
- journal article
- Published by SAGE Publications in ILR Review
- Vol. 46 (1) , 55-81
- https://doi.org/10.1177/001979399204600105
Abstract
Using panel data on state minimum wage laws and economic conditions for the years 1973–89, the authors reevaluate existing evidence on the effects of a minimum wage on employment. Their estimates indicate that a 10% increase in the minimum wage causes a decline of 1–2% in employment among teenagers and a decline of 1.5–2% in employment for young adults, similar to the ranges suggested by earlier time-series studies. The authors also find evidence that youth subminimum wage provisions enacted by state legislatures moderate the disemployment effects of minimum wages on teenagers.Keywords
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