Minimum Wages and Youth Employment: Evidence from the Finnish Retail Trade Sector

18 Pages Posted: 19 May 2009

See all articles by Petri Böckerman

Petri Böckerman

Labour Institute for Economic Research

Roope Uusitalo

Uppsala University - Department of Economics; IFAU - Institute for Labour Market Policy Evaluation; Government of the Republic of Finland - VATT Institute for Economic Research; IZA Institute of Labor Economics

Abstract

Following an agreement between the trade unions and the employer organizations in 1993, Finnish employers could temporarily pay less than the existing minimum wage for young workers. We examine the effects of these minimum wage exceptions by comparing the changes in wages and employment of the groups whose minimum wages were reduced with simultaneous changes among slightly older workers for whom the minimum wages remained unchanged. Our analysis is based on payroll record data and minimum wage agreements from the retail trade sector. The results show that average wages in the eligible group declined only modestly. We find no significant effects on employment.

Suggested Citation

Böckerman, Petri and Uusitalo, Roope, Minimum Wages and Youth Employment: Evidence from the Finnish Retail Trade Sector. British Journal of Industrial Relations, Vol. 47, Issue 2, pp. 388-405, June 2009, Available at SSRN: https://ssrn.com/abstract=1403495 or http://dx.doi.org/10.1111/j.1467-8543.2009.00720.x

Petri Böckerman (Contact Author)

Labour Institute for Economic Research

FIN-00530 Helsinki
Finland

Roope Uusitalo

Uppsala University - Department of Economics ( email )

Box 513
SE-75120 Uppsala
Sweden

IFAU - Institute for Labour Market Policy Evaluation

Box 513
751 20 Uppsala
Sweden

Government of the Republic of Finland - VATT Institute for Economic Research

Arkadiankatu 7
P.O Box 1279
Helsinki, FIN-00531
Finland

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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