Minimum Wage Impacts on Youth Employment Transitions, 1993-1999

24 Pages Posted: 25 Jan 2005

See all articles by Michele Campolieti

Michele Campolieti

University of Toronto at Scarborough - Division of Management

Tony Fang

York University - Atkinson School of Administrative Studies

Morley Gunderson

University of Toronto - Department of Economics

Abstract

The longitudinal nature of the Master File of the Survey of Labour and Income Dynamics (SLID) for the period 1993-9, enables comparing transitions from employment to non-employment for individuals affected by minimum wage changes with appropriate comparison groups not affected by minimum wages. This is based on the large number (24) of minimum wage changes that have occurred across the different provincial jurisdictions in Canada over the 1990s. The results indicate that the minimum wage increases have increased the transition from employment to non-employment of employed low-wage youths, who are at-risk of being affected by a minimum wage increase, by around 6 percentage points (ranging from 4 to 8 percentage points). These disemployment effects in turn imply 'minimum wage' elasticities of about -0.4 (ranging from -0.3 to -0.5).

Suggested Citation

Campolieti, Michele (Mike) and Fang, Tony and Gunderson, Morley, Minimum Wage Impacts on Youth Employment Transitions, 1993-1999. Available at SSRN: https://ssrn.com/abstract=654069

Michele (Mike) Campolieti

University of Toronto at Scarborough - Division of Management ( email )

1265 Military Trial
Scarborough, Ontario M1C 1A4
Canada

Tony Fang (Contact Author)

York University - Atkinson School of Administrative Studies ( email )

Toronto, Ontario M3J 1P3
Canada

Morley Gunderson

University of Toronto - Department of Economics ( email )

150 St. George Street
Toronto, Ontario M5S 3G7
Canada
416-978-5398 (Phone)
416-978-5696 (Fax)

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