Abstract
Using personnel data from a large US retail firm, I examine the firm's response to the 1996 federal minimum wage increase. Compulsory increases in average wages had negative but statistically insignificant effects on overall employment. However, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, especially younger and more affluent teenagers. Further analysis suggests a pattern consistent with noncompetitive models. Where the legislation affected mainly the wages of teenagers and so was only moderately binding, it led both to higher teenage labor market participation and to higher absolute employment of teenagers.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 155-194 |
| Number of pages | 40 |
| Journal | Journal of Labor Economics |
| Volume | 31 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 2013 |
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ASJC Scopus subject areas
- Economics and Econometrics
- Industrial relations
Cite this
Minimum wage effects on employment, substitution, and the teenage labor supply : Evidence from personnel data. / Giuliano, Laura.
In: Journal of Labor Economics, Vol. 31, No. 1, 01.2013, p. 155-194.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Minimum wage effects on employment, substitution, and the teenage labor supply
T2 - Evidence from personnel data
AU - Giuliano, Laura
PY - 2013/1
Y1 - 2013/1
N2 - Using personnel data from a large US retail firm, I examine the firm's response to the 1996 federal minimum wage increase. Compulsory increases in average wages had negative but statistically insignificant effects on overall employment. However, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, especially younger and more affluent teenagers. Further analysis suggests a pattern consistent with noncompetitive models. Where the legislation affected mainly the wages of teenagers and so was only moderately binding, it led both to higher teenage labor market participation and to higher absolute employment of teenagers.
AB - Using personnel data from a large US retail firm, I examine the firm's response to the 1996 federal minimum wage increase. Compulsory increases in average wages had negative but statistically insignificant effects on overall employment. However, increases in the relative wages of teenagers led to significant increases in the relative employment of teenagers, especially younger and more affluent teenagers. Further analysis suggests a pattern consistent with noncompetitive models. Where the legislation affected mainly the wages of teenagers and so was only moderately binding, it led both to higher teenage labor market participation and to higher absolute employment of teenagers.
UR - http://www.scopus.com/inward/record.url?scp=84871446663&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84871446663&partnerID=8YFLogxK
U2 - 10.1086/666921
DO - 10.1086/666921
M3 - Article
AN - SCOPUS:84871446663
VL - 31
SP - 155
EP - 194
JO - Journal of Labor Economics
JF - Journal of Labor Economics
SN - 0734-306X
IS - 1
ER -