Minimum Wages and Employment in France and the United States

32 Pages Posted: 18 Jun 1999 Last revised: 12 Oct 2010

See all articles by John M. Abowd

John M. Abowd

U.S. Census Bureau; Cornell University Department of Economics; Labor Dynamics Institute; School of Industrial and Labor Relations; NBER (on leave); CREST; IZA Institute of Labor Economics

Francis Kramarz

Independent

David N. Margolis

Centre d'Economie de la Sorbonne; IZA Institute of Labor Economics; World Bank - Social Protection Unit (HDNSP); Paris School of Economics (PSE)

Date Written: March 1999

Abstract

We use longitudinal individual wage and employment data in France and the United States to investigate the effect of changes in the real minimum wage on an individual's employment status. We find that movements in both French and American real minimum wages are associated with mild employment effects in general and very strong effects on workers employed at the minimum wage. In the French case, a 1% increase in the real minimum wage decreases the future employment probability of a man (respectively, a woman) currently employed at the minimum wage by 1.3% (1.0%). In the United States, a decrease in the real minimum wage of 1% increases the probability that a man (woman) employed at the minimum wage came from unemployment in the previous year by 0.4% (1.6%).

Suggested Citation

Abowd, John Maron and Kramarz, Francis and Margolis, David N., Minimum Wages and Employment in France and the United States (March 1999). NBER Working Paper No. w6996, Available at SSRN: https://ssrn.com/abstract=153370

John Maron Abowd (Contact Author)

U.S. Census Bureau ( email )

4600 Silver Hill Road
Washington, DC 20233
United States
+1.301.763.5880 (Phone)

Cornell University Department of Economics ( email )

261 Ives Hall
Ithaca, NY 14853-3901
United States

HOME PAGE: http://www.economics.cornell.edu

Labor Dynamics Institute ( email )

Ithaca, NY 14853-3901
United States

HOME PAGE: http://www.ilr.cornell.edu/LDI/

School of Industrial and Labor Relations ( email )

Ithaca, NY 14853-3901
United States

HOME PAGE: http://www.ilr.cornell.edu/LDI/

NBER (on leave) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CREST ( email )

92245 Malakoff Cedex
France

HOME PAGE: http://www.crest.fr/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Francis Kramarz

Independent

David N. Margolis

Centre d'Economie de la Sorbonne ( email )

106/112 boulevard de l'Hopital
Paris Cedex 13, 75647
France
(33-1) 44 07 82 20 (Phone)
(33-1) 44 07 82 47 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

World Bank - Social Protection Unit (HDNSP) ( email )

Human Development Network
1818, H Street, N.W.
Washington, DC 20433
United States

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
57
Abstract Views
1,601
rank
401,777
PlumX Metrics