Welfare Reform on the Web (April 2004): Minimum Wage - Overseas

MINIMUM WAGES, LABOR MARKET INSTITUTIONS AND YOUTH EMPLOYMENT: A CROSS-NATIONAL ANALYSIS

D. Neumark and W. Wascher

Industrial and Labor Relations Review, vo.57, 2004, p.223-248

Authors estimate the employment effects of changes in national minimum wages using a pooled cross-section time-series dataset comprising 17 OECD countries for the period 1975-2000. In general, they find that minimum wages cause employment losses among young people. However, employment losses appear to be smaller in countries which have subminimum wage provision for young workers. Overall, employment losses caused by minimum wages are greatest in countries with the least regulated labour markets.