IDEAS home Printed from https://ideas.repec.org/a/tra/jlabre/v26y2005i1p169-176.html
   My bibliography  Save this article

Does the Minimum Wage Drive Teenagers Out of the Labor Force?

Author

Listed:
  • WALTER J. WESSELS

Abstract

Labor force participation is directly related to the value of being in the labor force. The effect of the minimum wage on labor force participation thus measures how the minimum wage affects the welfare of labor force participants. In contrast, a decline in employment tells us little about welfare, because of the offsetting wage increase. Only changes in labor force participation can directly measure the welfare effects of the minimum wage. Despite this, most literature about the minimum wage has been focused on employment. My empirical results show that the minimum wage has a significant negative effect on teenage labor force participation. Thus, a minimum wage reduces the value of entering the labor market.

Suggested Citation

  • Walter J. Wessels, 2005. "Does the Minimum Wage Drive Teenagers Out of the Labor Force?," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 169-176, January.
    • Handle: RePEc:tra:jlabre:v:26:y:2005:i:1:p:169-176
    as

    Download full text from publisher

    File URL: http://transactionpub.metapress.com/link.asp?target=contribution&id=LCNTR2N41BJYJ126
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2020. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 41(3), pages 295-331, September.
    2. Shaun Gilyard & Marta Podemska-Mikluch, 2020. "Effects of Local, State, and Federal Minimum Wage on Employment Growth among Teenagers in the Restaurant Industry," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(1), pages 89-101, February.
    3. Aspen Gorry, 2008. "Labor Market Connections, Minimum Wages, and Youth Employment," 2008 Meeting Papers 794, Society for Economic Dynamics.
    4. Cervený, Jakub, 2017. "Essays in applied microeconometrics," Other publications TiSEM 112ffea7-a661-4914-8c61-3, Tilburg University, School of Economics and Management.
    5. Lavecchia, Adam M., 2020. "Minimum wage policy with optimal taxes and unemployment," Journal of Public Economics, Elsevier, vol. 190(C).
    6. Roberto Pedace & Stephanie Rohn, 2011. "The Impact of Minimum Wages on Unemployment Duration: Estimating the Effects Using the Displaced Worker Survey," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(1), pages 57-75, January.
    7. Gorry, Aspen, 2013. "Minimum wages and youth unemployment," European Economic Review, Elsevier, vol. 64(C), pages 57-75.
    8. Arindrajit Dube & Attila S. Lindner, 2024. "Minimum Wages in the 21st Century," NBER Working Papers 32878, National Bureau of Economic Research, Inc.
    9. Stephanie O. Crofton & William L. Anderson & Emily C. Rawe, 2009. "Do Higher Real Minimum Wages Lead to More High School Dropouts? Evidence from Maryland Across Races, 1993–2004," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 445-464, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tra:jlabre:v:26:y:2005:i:1:p:169-176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: http://transactionpub.metapress.com/link.asp?target=journal&id=110581 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.