Minimum Wage Effects on Employment and School Enrollment

David Neumark and William Wascher

Journal of Business & Economic Statistics, 1995, vol. 13, issue 2, 199-206

Abstract: The focus on employment effects in recent studies of minimum wages ignores an important interaction between schooling, employment, and the minimum wage. To study these linkages, the authors estimate a conditional logit model of employment and enrollment outcomes for teenagers using state-year observations for the period 1977 to 1989. The authors find a negative influence of minimum wages on school enrollment and a positive effect on the proportion of teens neither employed nor in school. The results are consistent with substitution by employers of higher- for lower-skilled teenagers, with the displaced teens ending up both out of work and out of school.

Date: 1995
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Working Paper: Minimum Wage Effects on Employment and School Enrollment (1994)
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