Federal minimum wage hikes do reduce teenage employment : a replication study of Bazen & Marimoutou (Oxford Bulletin of Economics and Statistics, 2002)
Stephen Bazen, Velayoudom Marimoutou
In 2002 we published a paper in which we used state space time series methods to analyse the teenage employment-federal minimum wage relationship in the US (Bazen and Marimoutou, 2002). The study used quarterly data for the 46 year period running from 1954 to 1999. We detected a small, negative but statistically significant effect of the federal minimum wage on teenage employment, at a time when some studies were casting doubt on the existence of such an effect. In this note we re-estimate the original model with a further 16 years of data (up to 2015). We find that the model satisfactorily tracks the path of the teenage employment-population ratio over this 60 year period, and yields a consistently negative and statistically significant effect of minimum wages on teenage employment. The conclusion reached is the same as in the original paper, and the elasticity estimates very similar: federal minimum wage hikes lead to a reduction in teenage employment with a short run elasticity of around -0.13. The estimated long run elasticity of between -0.37 and -0.47 is less stable, but is nevertheless negative and statistically significant.
Year of publication: |
2018
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Authors: | Bazen, Stephen ; Marimoutou, Vêlayoudom |
Other Persons: | Bazen, Stephen (contributor) ; Marimoutou, Vêlayoudom (contributor) |
Published in: |
International Journal for Re-Views in Empirical Economics : IREE. - Kiel : ZBW – German National Library of Economics, Leibniz Information Centre for Economics, ISSN 2566-8269, ZDB-ID 2899133-3. - Vol. 2.2018, 5, p. 1-13
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Subject: | minimum wage | teenage employment | state space methods | unobserved components model | replication study | Mindestlohn | Minimum wage | Junge Arbeitskräfte | Young workers | Zeitreihenanalyse | Time series analysis | Zustandsraummodell | State space model | Statistische Methode | Statistical method |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Research data: | |
Other identifiers: | 10.18718/81781.9 [DOI] hdl:10419/192940 [Handle] |
Classification: | J21 - Labor Force and Employment, Size, and Structure ; J38 - Public Policy ; C22 - Time-Series Models |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011959846