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National minimum wage and employment of young workers in the UK

Juan de Dios Tena () and Jan Fidrmuc

No 12, Discussion Papers from Central European Labour Studies Institute (CELSI)

Abstract: We analyze the impact of the UK national minimum wage (NMW) on the employment of young workers. The previous literature found little evidence of an adverse impact of the NMW on the UK labor market. We focus on the age-related increases in the NMW at 18 and 22 years of age. Using regression discontinuity design, we fail to find any effect of turning 22. However, we find a significant and negative employment effect for male workers at 21, which we believe to be an anticipation effect. We also find a negative effect for both genders upon turning 18. The age-related NMW increases may have an adverse effect on employment of young workers, with this effect possibly occurring already well in advance of reaching the threshold age.

Keywords: minimum wage; employment; young workers; regression discontinuity design (search for similar items in EconPapers)
JEL-codes: J21 J31 (search for similar items in EconPapers)
Date: 2013-06-18
New Economics Papers: this item is included in nep-eur, nep-lab and nep-lma
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Citations: View citations in EconPapers (6) Track citations by RSS feed

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Working Paper: National Minimum Wage and Employment of Young Workers in the UK (2013) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:cel:dpaper:12

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