The Impact of Age-Specific Minimum Wages on Youth Employment and Education: A Regression Discontinuity Analysis

Meltem Dayioglu, Müşerref Küçükbayrak and Semih Tumen

No 1431, Working Papers from Economic Research Forum

Abstract: We exploit the age-specific minimum wage rule—which sets a lower minimum wage for workers of age 15 than that for workers of age 16 and above—to estimate its effects on youth employment and education in Turkey. Using a regression discontinuity approach, we find that youth minimum wage policy substantially reduced employment probabilities of young males. In terms of magnitudes, the employment probability declined by 2.5-3.1 percentage points at 16-year-old age cut-off. Due to the policy, probability of unemployment increased around 2 percentage points. Our findings also suggest that the policy change increased high school enrollment among young males. We conjecture that the effects of the policy have mostly been driven by the demand-side forces rather than the supply side

Pages: 39
Date: 2020-12-20, Revised 2020-12-20
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Related works:
Journal Article: The impact of age-specific minimum wages on youth employment and education: a regression discontinuity analysis (2022)
Working Paper: The impact of age-specific minimum wages on youth employment and education: A regression discontinuity analysis (2021)
Working Paper: The Impact of Age-Specific Minimum Wages on Youth Employment and Education: A Regression Discontinuity Analysis (2020)
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