Minimum Wages and Youth Employment in France and the United States

John Abowd (), Francis Kramarz (), Thomas Lemieux and David Margolis

No 6111, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use longitudinal individual wage and employment data for young people in France and the United States to investigate the effect of intertemporal changes in an individual's status vis-…-vis the real minimum wage on employment transition rates. We" find that movements in both French and American real minimum wages are associated with relatively important employment effects in general, and very strong effects on workers employed at the minimum wage. In the French case, albeit imprecisely estimated, a 1% increase in the real minimum wage decreases the employment probability of a young man currently employed at the minimum wage by 2.5%. In the United States, a decrease in the real minimum of 1% increases the probability that a young man employed at the minimum wage came from nonemployment by 2.2%. These effects get worse with age in the United States, and are mitigated by eligibility for special employment promotion contracts in France.

JEL-codes: J23 J31 (search for similar items in EconPapers)
Date: 1997-07
Note: LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Published as Youth and Joblessness in Advanced Countries, Blanchflower, D. and R. Freeman, eds., Chicago: University of Chicago Press, 2000.
Published as Minimum Wages and Youth Employment in France and the United States , John M. Abowd, Francis Kramarz, Thomas Lemieux, David N. Margolis. in Youth Employment and Joblessness in Advanced Countries , Blanchflower and Freeman. 2000

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