Minimum Wages and Employment in France and the United States

John M. Abowd (), Francis Kramarz () and David N. MARGOLIS

No 2159, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We use longitudinal individual wage and employment data in France and the United States to investigate the effect of intertemporal changes in an individual's status vis-à-vis the real minimum wage on employment transition rates. We find that movements in both French and American real minimum wages are associated with mild employment effects in general, and very strong effects on workers employed at the minimum wage. In the French case, albeit imprecisely estimated, a 1% increase in the real minimum wage decreases the employment probability of a man (resp. a woman) currently employed at the minimum wage by 1.3% (resp. 1.0%). In the United States, a decrease in the real minimum of 1% increases the probability that a man (resp. a woman) employed at the minimum wage came from nonemployment by 0.4% (resp. 1.6%).

Keywords: International Comparisons; Minimum Wage (search for similar items in EconPapers)
JEL-codes: J23 J31 (search for similar items in EconPapers)
Date: 1999-05
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Working Paper: Minimum Wages and Employment in France and the United States (1999)
Working Paper: Minimum Wages and Employment in France and the United States (1998)
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