Employment, Unemployment and the Minimum Wage: A Causality Model
Posted: 12 Mar 2016
Date Written: December 1, 1983
Some empirical work tends to confirm the negative impacts of the law on employment, but much of that work leaves the existence and size of the fiat's effects uncertain. We find some evidence that the minimum wage has lowered the employment of white male teenagers (age 16-19) and nonwhite males over the age of 20. However, these impacts are small. No other significant employment impacts are discovered and no significant unemployment impacts are found.
Keywords: Miminum Wage; Granger Causality
JEL Classification: C50; C53; J38
Suggested Citation: Suggested Citation