Full Citation

Title: Labor Market Effects of Minimum Wage Shocks

Citation Type: Working Paper

Publication Year: 2019

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Abstract: The theoretical literature argues that labor markets outcomes are affected by real minimum wages. Real minimum wages, however, co-move with the business cycle; their correlation with labor market outcomes should therefore not be interpreted causally. We employ structural vector autoregression to distinguish between endogenous variation in real minimum wages, e.g. due to changes in the stance of the business cycle, and exogenous shocks. Impulse responses show that in the US, real minimum wage shocks increased teen wages and lowered employment and working hours of teenagers.

Url: http://www.rwi-essen.de/media/content/pages/publikationen/ruhr-economic-papers/rep_19_830.pdf

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Authors: Micheli, Martin

Series Title: RUHR Economic Papers

Publication Number: 830

Institution: RUHR

Pages: 20

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Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other

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