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Long-Term Impact of Youth Minimum Wages: Evidence from Two Decades of Individual Longitudinal Data

AuthorsCardoso, Ana Rute
Issue Date2009
PublisherForschungsinstitut zur Zukunft der Arbeit (IZA)
CitationIZA Discussion Paper No. 4236
AbstractThis paper quantifies the long-run impact of exposure to youth minimum wages and sheds light on its mechanisms. It uses remarkable longitudinal data spanning for twenty years and explores legislative changes that define groups of teenagers exposed for different durations. After controlling for the contemporaneous impact of the minimum wage, its long-run impact translates into: an overall wage premium, consistent with an upgrading in the quality of jobs offered; a flatter tenure-earnings profile, consistent with lower initial investment in firmspecific training. Interestingly, the overall wage premium increases with exposure and the tenure-earnings profile is flatter the longer the exposure.
DescriptionTrabajo presentado a: "Third World Conference of the European Association of Labour Economists and the Society of Labor Economists (EALE-SOLE)" celebrada en Londres en 2010; "European Network for Training in Economic Research (ENTER) Jamboree" celebrado en Francia en 2010.
Appears in Collections:(IAE) Informes y documentos de trabajo
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