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Identifying Minimum Wage Effects: New Evidence from Monthly CPS Data
Author(s) -
SABIA JOSEPH J.
Publication year - 2009
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.1468-232x.2009.00559.x
Subject(s) - economics , minimum wage , current population survey , wage , demographic economics , range (aeronautics) , econometrics , labour economics , population , medicine , environmental health , engineering , aerospace engineering
The appropriateness of including year effects in employment models has been a contentious issue in the minimum wage literature. Using monthly data from the 1979–2004 Current Population Surveys, I find consistent evidence of adverse labor demand effects for teenagers across specifications preferred by those on each side of this debate. Estimated employment elasticities range from –0.2 to –0.3 and unconditional hours elasticities from –0.4 to –0.5.