Munich Personal RePEc Archive

Minimum Wages and Youth Employment

Gorry, Aspen (2010): Minimum Wages and Youth Employment.

[img]
Preview
PDF
MPRA_paper_25296.pdf

Download (3MB) | Preview

Abstract

Significant employment differences between the US and Europe are concentrated among young workers. This paper constructs a labor search model that accounts for age patterns of employment. Work experience reduces the probability that workers lose their jobs. By introducing minimum wages, the model explains empirical findings on the effects of minimum wage laws. In addition, the model shows that minimum wages can account for about half of the differences in youth employment between Europe and the United States.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.