Getting Handcuffs on an Octopus: Minimum Wages, Employment, and Turnover
51 Pages Posted: 16 Mar 2013 Last revised: 15 Aug 2014
Date Written: January 30, 2014
Abstract
Theoretical work on minimum wage policy emphasizes labor market dynamics, but the resulting implications for worker mobility remain largely untested. We show that in the teenage labor market minimum wages reduce worker flows and increase job stability. Furthermore, we find that the employment effects of the minimum wage vary considerably across markets that exhibit different degrees of labor market tightness. Our results help explain the small effects of minimum wages on employment commonly found in the aggregate data and are consistent with labor market involving search frictions.
Keywords: Minimum Wage, Job Flows, Turnover, Unemployment
JEL Classification: J38, J39, J63, J64, J68, E24
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties
By Arindrajit Dube, T. William Lester, ...
-
Does a Higher Minimum Wage Enhance the Effectiveness of the Earned Income Tax Credit?
By David Neumark and William Wascher
-
By David Neumark and William Wascher
-
Revisiting the Minimum Wage-Employment Debate: Throwing Out the Baby with the Bathwater?
By David Neumark, John Michael Ian S Salas, ...
-
Revisiting the Minimum Wage-Employment Debate: Throwing Out the Baby with the Bathwater?
By David Neumark, John Michael Ian S Salas, ...
-
Do Frictions Matter in the Labor Market? Accessions, Separations and Minimum Wage Effects
By Arindrajit Dube, T. William Lester, ...