Evidence on Employment Effects of Minimum Wages and Subminimum Wage Provisions From Panel Data on State Minimum Wage Laws

David Neumark and William Wascher

No 3859, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We construct a panel data set on state-level minimum wage laws and economic conditions to reevaluate existing evidence on minimum wage effects on employment, most of which comes from time-series data. Our estimates of the elasticities of teen and young-adult employment-to-population ratios fall primarily in the range -0.1 to -0.2, similar to the consensus range of estimates from time-series studies. We also find evidence that youth subminimum wage provisions enacted by state legislatures have moderated the disemployment effects of minimum wages.

Date: 1991-10
Note: LS
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Published as Neumark, David and Wascher, William (2004) "Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis," Industrial & Labor Relations Review, Vol. 57, No. 2, article 4. p. 55-81

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