Do Lower Minimum Wages for Young Workers Raise Their Employment? Evidence from a Danish Discontinuity

@article{Kreiner2020DoLM,
  title={Do Lower Minimum Wages for Young Workers Raise Their Employment? Evidence from a Danish Discontinuity},
  author={Claus Thustrup Kreiner and Daniel H. Reck and Peer Ebbesen Skov},
  journal={Review of Economics and Statistics},
  year={2020},
  volume={102},
  pages={339-354}
}
Abstract We estimate the impact of youth minimum wages on youth employment by exploiting a large discontinuity in Danish minimum wage rules at age 18, using monthly payroll records for the Danish population. The hourly wage jumps by 40% at the discontinuity. Employment falls by 33%, and total input of hours decreases by 45%, leaving the aggregate wage payment almost unchanged. We show theoretically how the discontinuity may be exploited to evaluate policy changes. The relevant elasticity for… 
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We estimate the impact of youth minimum wages on youth employment by exploiting a large discontinuity in Danish minimum wage rules at age 18, using monthly payroll records for the Danish population.
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