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Minimum wages and employment

Keil, Manfred and Robertson, Donald and Symons, James (2001) Minimum wages and employment. CEPDP, 497. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753014696

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Identification Number: 497


This paper investigates the effect of minimum wages on employment using a panel of US state-based data. We estimate a minimalist dynamic version of the specification implied by neo-classical theory. We find statistically and economically significant effects of minimum wages on youth employment. Unlike many other studies we find also significant effects on aggregate state employment. These results re-establish the conventional wisdom as existing before the work of Card-Krueger-Katz. The paper meets the methodological criticisms of this sort of panel study made by CKK. An important econometric innovation in this paper is to produce estimates allowing for cross-sectional correlation, which offers unbiased inference and potential efficiency gains.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2001 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 29 Jul 2008 15:05
Last Modified: 01 Oct 2010 09:14

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