Minimum wages and teen employment: A spatial panel approach

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

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
Volume92
Issue number2
DOIs
StatePublished - Jun 2013

Keywords

  • Minimum wages
  • Spatial panel
  • Teen employment

Fingerprint Dive into the research topics of 'Minimum wages and teen employment: A spatial panel approach'. Together they form a unique fingerprint.

  • Cite this