Minimum Wage Effects on School and Work Transitions of Teenagers

Posted: 10 Oct 1998

See all articles by David Neumark

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

William Wascher

Board of Governors of the Federal Reserve System

Abstract

Minimum wages increase the probability that teenagers leave school to become employed or work more hours, and increase the probability that they leave school and become non-enrolled and non-employed. Minimum wages also increase the probability that lower-wage employed teenagers become non-enrolled and non-employed. This evidence suggests that (1) the competitive model of minimum wage effects is largely correct; and (2) that there are significant enrollment and employment effects associated with minimum wage changes that should be of concern to policy makers.

JEL Classification: J38

Suggested Citation

Neumark, David and Wascher, William, Minimum Wage Effects on School and Work Transitions of Teenagers. Available at SSRN: https://ssrn.com/abstract=6389

David Neumark

University of California, Irvine - Department of Economics ( email )

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HOME PAGE: http://www.socsci.uci.edu/~dneumark/

National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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William Wascher (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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Washington, DC 20551
United States
202-452-2812 (Phone)
202-452-3819 (Fax)

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