National minimum wage and labour market outcomes of young workers

Jan Fidrmuc
Authors registered in the RePEc Author Service: Juan de Dios Tena

DES - Working Papers. Statistics and Econometrics. WS from Universidad Carlos III de Madrid. Departamento de Estadística

Abstract: We analyze the impact of the national minimum wage (NMW) in the UK on the employment of young workers. We utilize the regression discontinuity approach to assess the impact of age-related increases in the NMW when workers turn 18 and 22. The previous literature has found little evidence of an adverse impact of the NMW on the UK labour market, both when considering the age-related increases or the regular annual increases that apply to all NMW rates. We fail to find any effect of turning 22 on employment. However, we find a significant and negative effect of male workers turning 21. We also find a negative effect for both genders upon turning 18. The age-related NMW rates 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; Unemployment; Young; workers (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-eur, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:cte:wsrepe:ws121209

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