Minimum wage effects on employment, substitution, and the teenage labor supply: Evidence from personnel data

Laura Giuliano

Research output: Contribution to journalArticle

36 Scopus citations

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 languageEnglish (US)
Pages (from-to)155-194
Number of pages40
JournalJournal of Labor Economics
Volume31
Issue number1
DOIs
StatePublished - Jan 1 2013

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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