Click here to skip to content

Welfare Reform on the Web (March 2005): Minimum Wage - Overseas

DOES THE MINIMUM WAGE DRIVE TEENAGERS OUT OF THE LABOR FORCE?

W.J. Wessels

Journal of Labor Research, vol.26, 2005, p.169-176

Uses econometric techniques to investigate how the minimum wage affected teenage labour force participation in the USA between 1979 and 1999. Results show that minimum wage hikes had a small but significant negative effect on the labour force participation of teenagers. In a nutshell, the minimum wage drove teenagers out of the labour market.

Search Welfare Reform on the Web