Keil, Manfred, 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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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)|
|Additional Information:||© 2001 the authors|
|Uncontrolled Keywords:||Minimum wages, panel data, cross sectional correlation, factor analysis|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Journal of Economic Literature Classification System:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J39 - Other
|Sets:||Collections > Economists Online
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