Journal of Labor Research

, Volume 34, Issue 3, pp 253-280

First online:

The Effect of the Minimum Wage on Covered Teenage Employment

  • Nicole M. CoomerAffiliated withRTI International
  • , Walter J. WesselsAffiliated withNorth Carolina State University Email author 

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Unlike previous studies on the minimum wage, which focused on its effect on total teenage employment, we examine its effect on covered employment. A covered job was defined to be one paying the minimum wage or more. Using contemporary wages to classify workers this way may inflate the estimated effect of minimum wages on covered employment. To avoid this bias, covered jobs are identified using a logit procedure run over years in which the minimum age was not increased. We find that minimum wages reduced covered employment significantly more than total employment. We also show that covered employment may be overstated in the period following an increase in the minimum wage.

JEL Codes

J08 J38