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Using international and intertemporal variations in minimum wages, employment protectionlaws, minimum wage regulations and female work behavior within the OECD, empirical analysisprovide evidence that higher minimum wages are associated with lower female labor forceparticipation and employment. This association is more significant in countries with more stringentemployment protection laws, lower female tertiary educational enrollment and higher fertility.In addition to the extensive margin analysis, it is shown that minimum wage levels arepositively correlated with the ratio of part-time workers. That is, minimum wages are associatedwith not only lower participation and employment rates among women but also with highermarginalization of female work. This association is stronger in countries with more inflexiblelabor markets and less active labor market policies. Moreover, existence of a subminimum wagefor youths implies further reduction of employment while increasing part-time job incidence forfemales, when the minimum wage increases.

Minimum Wages, Market Inflexibilities, and Female Employment in Select OECD Countries