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Title: Effects of Minimum Wages on Teenage Employment, Enrollment, and Idleness
Resulting in 1 citation.
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Neumark, David B. |
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Effects of Minimum Wages on Teenage Employment, Enrollment, and Idleness ERIC Document No. ED397241; Clearinghouse No. CE072034; August 1995 Cohort(s): NLSY79 Publisher: ERIC Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Employment, In-School; Employment, Youth; High School; Higher Education; Minimum Wage; Teenagers; Unemployment; Vocational Education; Wages, Youth Permission to reprint the abstract has not been received from the publisher. A study described the effects of minimum wages on teenagers by using individual-level panel data on school and work transitions of teenagers. Panel data from 1979-92 measuring transitions among alternative employment and enrollment activities of teenagers were obtained from matched Current Population Surveys data sets. Findings indicated that higher minimum wages had significant negative effects on the employment prospects of less skilled teens. In addition, increases in the minimum wage were associated with an earlier age for leaving school. These employment changes were not evenly distributed across all youth, but were concentrated among those youths with the worst employment prospects. Younger idle youths (ages 16-17) had an almost 6 percentage point increase in their changes of continued idleness compared to older idle youths (ages 18-19). The effect of higher minimum wages was even stronger for minority youths. If they were idle before the minimum wage was raise d, they w ould have a higher probability of continuing to be idle. The relationship between a teen worker's wage and the new minimum markedly affected the employment outcome. Teens employed with wages below the new minimum showed a higher probability of becoming unemployed. (Appendixes include previous research on substitution hypothesis, the data set, the econometric framework and estimation, additional evidence on queuing, information on the robustness of the results, and a list of 32 references.) (YLB) |
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Bibliography Citation
Neumark, David B. "Effects of Minimum Wages on Teenage Employment, Enrollment, and Idleness." ERIC Document No. ED397241; Clearinghouse No. CE072034; August 1995. |