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The Effect of Government-Mandated Benefits on Youth Employment

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  • Robert Kaestner

Abstract

The author empirically examines the effect on youth employment of government-mandated employer-provided benefits. In particular, he investigates the effect of unemployment compensation insurance taxes and workers' compensation insurance mandates on the employment of youths (aged 16–19) and young adults (aged 20–24 and 25–34). An analysis of time series state aggregate data for the years 1982–89 indicates that a one percentage point increase in the employer's cost of workers' compensation insurance reduced employment for both teenagers and young adults by about 1.5 percentage points. Unemployment insurance taxes significantly decreased the employment of teenagers, but not that of young adults.

Suggested Citation

  • Robert Kaestner, 1996. "The Effect of Government-Mandated Benefits on Youth Employment," ILR Review, Cornell University, ILR School, vol. 50(1), pages 122-142, October.
    • Handle: RePEc:sae:ilrrev:v:50:y:1996:i:1:p:122-142
    DOI: 10.1177/001979399605000108
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    References listed on IDEAS

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    Cited by:

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    2. Adriana Kugler & Maurice Kugler, 2009. "Labor Market Effects of Payroll Taxes in Developing Countries: Evidence from Colombia," Economic Development and Cultural Change, University of Chicago Press, vol. 57(2), pages 335-358, January.
    3. Carrie H. Colla & William H. Dow & Arindrajit Dube, 2011. "The Labor Market Impact of Employer Health Benefit Mandates: Evidence from San Francisco's Health Care Security Ordinance," NBER Working Papers 17198, National Bureau of Economic Research, Inc.
    4. Sourushe Zandvakili, 2002. "Trends in Earnings Inequality among Young Adults," Review of Social Economy, Taylor & Francis Journals, vol. 60(1), pages 93-107.
    5. Thomas C. Buchmueller & John DiNardo & Robert G. Valletta, 2011. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 25-51, November.
    6. Kim, Ji Hwan & Lee, Jungmin & Lee, Kyungho, 2023. "Minimum wage, social insurance mandate, and working hours," Journal of Public Economics, Elsevier, vol. 225(C).
    7. Leonardo Fabio Morales & Carlos Medina, 2017. "Assessing the Effect of Payroll Taxes on Formal Employment: The Case of the 2012 Tax Reform in Colombia," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2017), pages 75-124, November.
    8. Glatt, Jordan & Wunnava, Phanindra V., 2016. "Help Not Wanted: The Dismal Science of Youth Unemployment's Scarring Effect," IZA Discussion Papers 10069, Institute of Labor Economics (IZA).
    9. Kelly D. Edmiston, 2006. "Workers’ Compensation and State Employment Growth," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 121-145, February.
    10. Chau-kiu Cheung & Kwok Leung, 2010. "Ways that Social Change Predicts Personal Quality of Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(3), pages 459-477, May.

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