Welfare Reform on the Web (August 2009): Minimum Wage - overseas

Using local labor market data to re-examine the employment effects of the minimum wage

J.P. Thompson

Industrial and Labor Relations Review, vol.62, 2009, p. 343-366

This paper uses county level data from the US Census Bureau's Quarterly Workforce Indicators to measure the effects of the minimum wage on teenage employment in local labour markets where it is legally binding. The analysis shows a significant negative impact on employment. The effect was strongest in small counties, was restricted to transitory jobs and new hires, and was apparently not experienced by young adults aged 19-22.