On the substitution effect of the minimum wage increase: new evidence
Applied Economics Letters, 2000, vol. 7, issue 4, 225-228
The impact of the minimum wage increase on the part-time/full-time employment ratio (PTFT) is re-examined. Contrary to some previous findings, strong evidence is found of the substitution effect that if the relative wage (the ratio of the minimum wage to the average hourly earning in the private sector) rises, PTFT decreases. The linear and logarithmic forms can be rejected. The partial adjustment process describes the lag response better. Real GDP growth is found to be insignificant and may be proxied by the unemployment rate for experienced workers.
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:7:y:2000:i:4:p:225-228
Ordering information: This journal article can be ordered from
Access Statistics for this article
Applied Economics Letters is currently edited by Anita Phillips
More articles in Applied Economics Letters from Taylor & Francis Journals
Series data maintained by Michael McNulty ().