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Minimum wage effects on employment, substitution, and the teenage labor supply: Evidence from personnel data

Laura Giuliano ()

No 2010-5, Working Papers from University of Miami, Department of Economics

Abstract: Using personnel data from a large U.S. retail firm with more than 700 stores nationwide, this study examines the firm’s response to the 1996 federal minimum wage increase. First, increases in average wages had negative, but statistically insignificant effects on overall employment. Second, however, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, and especially of more productive teenagers from affluent ZIP codes. This second result is consistent with models that link labor demand to labor market participation, and in particular suggests informational asymmetries may be important in the teenage labor market.

Pages: 52 pages
Date: 2009-09
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Related works:
Journal Article: Minimum Wage Effects on Employment, Substitution, and the Teenage Labor Supply: Evidence from Personnel Data (2013) Downloads
Working Paper: Minimum Wage Effects on Employment, Substitution, and the Teenage Labor Supply: Evidence from Personnel Data (2011) Downloads
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