Minimum Wage Effects on Employment, Substitution, and the Teenage Labor Supply: Evidence from Personnel Data

Laura Giuliano

No 2011-12, Working Papers from University of Miami, Department of Economics

Abstract: Using personnel data from a large U.S. retail firm, I examine the firm’s response to the 1996 federal minimum wage increase. Compulsory increases in average wages had negative but statistically insignificant effects on overall employment. However, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, especially younger and more affluent teenagers. Further analysis suggests a pattern consistent with non-competitive models. Where the legislation affected mainly the wages of teenagers and so was only moderately binding, it led both to higher teenage labor market participation and to higher absolute employment of teenagers.

Keywords: minimum wage; employment; teenage employment (search for similar items in EconPapers)
JEL-codes: D22 J23 J38 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2011
New Economics Papers: this item is included in nep-lab and nep-lma
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Forthcoming: Under Review

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https://www.herbert.miami.edu/_assets/files/repec/wp2011-12.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: Minimum Wage Effects on Employment, Substitution, and the Teenage Labor Supply: Evidence from Personnel Data (2013)
Working Paper: Minimum wage effects on employment, substitution, and the teenage labor supply: Evidence from personnel data (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:mia:wpaper:2011-12

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