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Impact of the Minimum Wage on Youth Labor Markets
Author(s) -
Liu Shanshan,
Hyclak Thomas J.,
Regmi Krishna
Publication year - 2016
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12071
Subject(s) - earnings , quarter (canadian coin) , minimum wage , turnover , wage , labour economics , economics , panel data , demographic economics , hourly wage , wage growth , econometrics , geography , accounting , archaeology , management
We study the effect of the minimum wage on labor market outcomes for young workers using US county‐level panel data from the first quarter of 2000 to the first quarter of 2009. We go beyond the usual estimates of earnings and employment effects to consider how differences across states in the minimum wage affect worker turnover via separations and accessions and job turnover through new job creation and job losses. We find that a higher minimum wage level is associated with higher earnings, lower employment and reduced worker turnover for those in the 14–18 age group. For workers aged 19–21 and 22–24, we find less consistent evidence of minimum wage effects on earnings and employment. But, even for these age groups, a higher minimum wage is found to reduce accessions, separations and the turnover rate.