Evidence on Employment Effects of Minimum Wages and Subminimum Wage Provisions from Panel Data on State Minimum Wage Laws

45 Pages Posted: 8 Jan 2007 Last revised: 20 Jul 2010

See all articles by David Neumark

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

William Wascher

Board of Governors of the Federal Reserve System

Date Written: October 1991

Abstract

We construct a panel data set on state-level minimum wage laws and economic conditions to reevaluate existing evidence on minimum wage effects on employment, most of which comes from time-series data. Our estimates of the elasticities of teen and young-adult employment-to-population ratios fall primarily in the range -0.1 to -0.2, similar to the consensus range of estimates from time-series studies. We also find evidence that youth subminimum wage provisions enacted by state legislatures have moderated the disemployment effects of minimum wages.

Suggested Citation

Neumark, David and Wascher, William, Evidence on Employment Effects of Minimum Wages and Subminimum Wage Provisions from Panel Data on State Minimum Wage Laws (October 1991). NBER Working Paper No. w3859, Available at SSRN: https://ssrn.com/abstract=473987

David Neumark (Contact Author)

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William Wascher

Board of Governors of the Federal Reserve System ( email )

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