Quotation Sturn, Simon. 2018. Do Minimum Wages Lead to Job Losses? Evidence from OECD Countries on Low-Skilled and Youth Employment. Industrial and Labor Relations Review (ILR Review), 71 (3), 647-675.




The author investigates effects of minimum wage rates on low-skilled, female low-skilled, and youth employment. The sample consists of 19 Organisation for Economic Co-operation and Development (OECD) countries from 1997 to 2013 for low-skilled workers and from 1983 to 2013 for young workers. Six different static or dynamic estimation approaches are applied on different versions of the specifications, controlling for up to quadratic time trends. The author further investigates the effects over the long run and over the business cycle as well as the effects of high minimum wages and of institutional complementarities. The findings provide little evidence of substantial disemployment effects for low-skilled, female low-skilled, or young workers. The estimated employment elasticities are small and statistically indistinguishable from zero. The author then considers why his results on youth employment differ from those of Neumark and Wascher (2004), showing that they overstate precision and that small changes in their specifications lead to minimum wage effects close to zero.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Industrial and Labor Relations Review (ILR Review)
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-B, WH-B
Language English
Title Do Minimum Wages Lead to Job Losses? Evidence from OECD Countries on Low-Skilled and Youth Employment
Volume 71
Number 3
Year 2018
Page from 647
Page to 675
Reviewed? Y
URL https://doi.org/10.1177/0019793917741259
DOI http://dx.doi.org/10.1177/0019793917741259
Open Access N


Sturn, Simon (Details)
Department of Socioeconomics DP (Details)
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