Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws

  title={Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws},
  author={David Neumark and William L. Wascher},
  journal={Industrial \& Labor Relations Review},
  pages={55 - 81}
Using panel data on state minimum wage laws and economic conditions for the years 1973–89, the authors reevaluate existing evidence on the effects of a minimum wage on employment. Their estimates indicate that a 10% increase in the minimum wage causes a decline of 1–2% in employment among teenagers and a decline of 1.5–2% in employment for young adults, similar to the ranges suggested by earlier time-series studies. The authors also find evidence that youth subminimum wage provisions enacted by… 

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