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Title: Minimum Wage Effect on Training on the Job
Resulting in 1 citation.
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Hashimoto, Masanori |
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Minimum Wage Effect on Training on the Job American Economic Review 72,5 (December 1982): 1070-1087. Also: http://www.jstor.org/stable/1812023 Cohort(s): Young Men Publisher: American Economic Association Keyword(s): Benefits, Fringe; Blue-Collar Jobs; Government Regulation; Job Training; Minimum Wage; Schooling, Post-secondary; Training, Post-School Permission to reprint the abstract has not been received from the publisher. This paper examines the theoretical argument for the adverse minimum wage effects and presents empirical evidence on the effects of minimum wages on the training of young male workers. The author finds that an effective minimum wage diminishes training in two ways. First, to the extent that the minimum wage results in lost employment, it deprives the disemployed workers access to training. This outcome is a definite side effect of decreased employment caused by the minimum wage. Second, even those workers who manage to remain employed at wages near the minimum wage may experience a reduction in on-the-job training. The second effect is the primary focus of this study. The author concludes that there should be youth differentials of exemptions in the minimum wage rates. By allowing young workers to pay for their training by accepting reduced current wages, youth differentials would help to alleviate the adverse minimum wage effects on future earnings. |
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Bibliography Citation
Hashimoto, Masanori. "Minimum Wage Effect on Training on the Job." American Economic Review 72,5 (December 1982): 1070-1087.
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