Minimum Wages and Teenagers' Enrollment-Employment Outcomes: A Multinomial Logit Model

Ronald Ehrenberg and Alan J. Marcus

Journal of Human Resources, 1982, vol. 17, issue 1, 39-58

Abstract: This paper tests the hypothesis that the effect of minimum wage legislation on teenagers' education decisions is asymmetrical across family income classes, with the legislation inducing children from low-income families to reduce their levels of schooling and children from higher-income families to increase their educational attainment. We use data from the National Longitudinal Surveys (NLS) and exploit the fact that, although the minimum wage is fixed at a point in time, its value relative to adult wages varies across areas. Multinomial logit models of teenagers' enrollment-employment outcomes are estimated. The hypothesis appears to be confirmed for white teens; however, the evidence for nonwhites is more ambiguous.

Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:17:y:1982:i:1:p:39-58

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