Exposure to minimum wages at young ages could lead to adverse longer-run effects via decreased labor market experience and tenure, and diminished education and training, while beneficial longer-run effects could arise if minimum wages increase skill acquisition. Evidence suggests that as individuals reach their late 20s, they earn less the longer…

Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…

The impact of minimum wage policy on the hiring of teenagers in relation to adult laborers in retail trade has been assessed through analysis of a study sample of 353 male and 391 female retail trade employees who were part of the 1967 Survey of Economic Opportunity. (LH)

This paper tests the hypothesis that the effect of minimum wage legislation on teenagers' education decisions is asymmetrical across family income classes, with the legislation inducing children from low-income families to reduce their levels of schooling and children from higher-income families to increase their educational attainment. (Author)

Describes a program of the Youth Incentive Entitlement Pilot Projects (YIEPP) that offered a minimum wage job to 16 to 19 year olds who were from low-income households and who were still enrolled in high school. Provides strong evidence that the unemployment of these youths is largely involuntary, due to demand deficiency at the minimum wage. (NRJ)

An exploratory econometric model to explain the duration of industrial training programs and to assess training policy is explored. The major results are that most training is conducted in large firms, turnover discourages specific training while government assistance encourages it, and neither minimum wages nor unions have significant negative…

Using data from 1954-86, including the 1980s period of relative decline in the value of the minimum wage, a study found that a 10 percent increase in minimum wage reduced teen unemployment by less than 1 percent. In addition, no apparent effect on employment of adults aged 20-24 was found, and minimal differences appeared for sex and race. (SK)

This paper provides evidence on a wide set of margins along which labor markets can adjust in response to increases in the minimum wage, including wages, hours, employment, and ultimately labor income. Not surprisingly, the evidence indicates that low-wage workers are most strongly affected, while higher-wage workers are little affected. Workers…

Canadian panel data 1988-90 were used to compare estimates of minimum-wage effects based on a low-wage/high-worker sample and a low-wage-only sample. Minimum-wage effect for the latter is nearly zero. Different results for low-wage subgroups suggest a significant effect for those with longer low-wage histories. (Contains 26 references.) (SK)

The study finds that a 10 percent increase in the federal minimum wage (or the coverage rate) would reduce teenage (16-19) employment by about one percent, which is at the lower end of the range of estimates from previous studies. (Author/SSH)

A study was conducted to determine what types of jobs youth are most likely to accept and to distinguish whether the characteristics and backgrounds of young people influence their reservation wages for given jobs. (Author/CT)