Minimum wages and teen employment: A spatial panel approach

Charlene M. Kalenkoski, Donald J. Lacombe

Research output: Contribution to journalArticlepeer-review

12 Scopus citations


The authors employ spatial econometrics techniques and annual averages data from the US Bureau of Labor Statistics for 1990-2004 to examine how changes in the minimum wage affect teen employment. Spatial econometrics techniques account for the fact that employment is correlated across states. The authors find a combined direct and indirect effect of minimum wages on teen employment to be -2.1 per cent for a 10 per cent increase in the real effective minimum wage. Ignoring spatial correlation underestimates the magnitude of the effect of minimum wages on teen employment.

Original languageEnglish
Pages (from-to)407-417
Number of pages11
JournalPapers in Regional Science
Issue number2
StatePublished - Jun 2013


  • Minimum wages
  • Spatial panel
  • Teen employment


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