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doi:10.15678/ZP.2015.33.3.01
ZarządzaniePubliczne
Nr3(33)/2015
ISSN1898-3529
ShanshanLiu,ThomasHyclak
EmploymenteffectsofUSminimumwagepolicy
Astrongargumentagainstraisingtheminimumwage,oftenvoicedinUSpolicydebates,isthatahigher
minimumwagewillhaveadverseeffectsonjobopportunities.Considerableefforthasbeendevotedtoproviding
quantitativeestimatesoftheemploymenteffectsoftheminimumwagewithquitemixedresults.Wereviewthis
literaturebeforeturningtoestimatesoftheimpactofstateleveldifferencesintheleveloftheminimumwageon
youthemploymentinlocallabormarketsintheGreatLakesRegionoftheUS.Wefindthatahigherminimum
wagelevelisassociatedwithhigherearnings,loweremployment,andreducedworkerturnoverforthoseinthe14to
18agegroup.Forworkersaged19to21and22to24,wefindlessconsistentevidenceofimportantminimumwage
effectsonearningsandemployment.
Keywords:minimumwage,youthemployment,workerandjobturnover.
I.Introduction
Analysis(BEA)EconomicArea(EA)inthat
regiontocontrolforspatialheterogeneity.Wefind
Effortstomeasurethelabormarketeffects
evidencethatthelevelofthestateminimumwage
ofcross-statedifferencesintheminimumwage
isnegativelycorrelatedwithteenageemployment
haveyieldedarangeofestimates.Casestudies
levels,withlowelasticityestimatesinthe.1
usingdifference-in-differencemethodsoftenfind
to.3range,butpositivelycorrelatedwiththe
positiveemploymenteffectsfollowingchanges
employmentofyoungworkersbetweentheages
intheminimumwageononesideofastate
of22and24.Wealsoexaminedynamicaspects
border.Paneldatastudiesseemtoconfirmthe
ofyouthlabormarketsandfindthataccessions,
oldconsensusthata10%higherminimumwage
separationsandturnoverratesarelowerinlocal
wouldresultin1%to3%fewerjobsforaffected
labormarketswithhigherminimumwagesfor
workers.Buttheseestimatednegativeemployment
allyouth.Whilewefindthereisnominimum
effectsoftendisappearwhencontrolsforspatial
wageeffectonnetjobgrowthforteensinour
heterogeneityareincluded.
Thispaperreexaminestheeffectofthemi-
sample,thereisapositiveeffectforolderyouth
inthesemarkets.
nimumwageonlabormarketoutcomesbyfocusing
Therestofthepaperproceedsasfollows.
onlocallabormarketsforyouth.Weconcentrate
SectionIIbrieflyreviewstheliterature,with
onthefivestatesintheGreatLakesregionanduse
afocusonidentifyingthemethodologyand
separatetimeeffectsforeachBureauofEconomic
differentconclusionsaboutminimumwageeffects
onemployment.SectionIIIdescribesthedata
andhowweconstructoursample.SectionIV
presentstheempiricalmodel.SectionVprovides
themainresults.SectionVIconcludes.
ShanshanLiu
DepartmentofEconomics
LehighUniversity
621TaylorStreet,Bethlehem,PA18015,USA
liushanshan198603@gmail.com
ThomasHyclak,Professor
DepartmentofEconomics
LehighUniversity
621TaylorStreet,Bethlehem,PA18015,USA
tjh7@lehigh.edu
II.Background
Whataretheeffectsofhigherminimum
wagelevelsonlabormarketoutcomes?Thisis
aquestionthathasattractedtheattentionofmany
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