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Long‐Term Impact of Minimum Wages on Workers’ Careers: Evidence from Two Decades of Longitudinal Linked Employer–Employee Data

Ana Rute Cardoso ()

Scandinavian Journal of Economics, 2019, vol. 121, issue 4, 1337-1380

Abstract: We analyze the impact of high youth minimum wages, relying on two decades of linked employer–employee data and a major law change. Alternative treatment/control groups follow from two strands of the literature, one tracking low‐skilled workers employed before the law change, who are eligible for a large wage increase, and one tracking the employment of full cohorts, whether working or in school when the law changed. High minimum wages led to a short‐term wage gain, which faded over time. They did not jeopardize employment prospects. Changes in the hours worked by part‐time workers point to increased job attachment.

Date: 2019
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Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

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Handle: RePEc:bla:scandj:v:121:y:2019:i:4:p:1337-1380