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Minimum Wages, Labor Market Institutions, and Youth Employment

A Cross-National Analysis

Bibliographic Data

ID3406552
AuthorsDavid Neumark (0000-0002-7681-1884, Public Policy Institute of California), William Wascher (0000-0003-0313-5958, Public Policy Institute of California)
Year2004
Volume57
Issue2
Pages223-248
Publication date2004-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979390405700204
OpenAlexW3121516253
LanguageEN
Citations received44
References cited26

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

Economics · Efficiency wage · Labour economics · Minimum wage · Wage · Work (physics) · Employment and Welfare Studies · Firm Innovation and Growth · Labor market dynamics and wage inequality

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Unique citing works37
Citations per year2,2
Citation span2006 - 2025 (20)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 41

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