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Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/33254
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Eckstein, Zvi | | en_US |
| dc.contributor.author | | Ge, Suqin | | en_US |
| dc.contributor.author | | Petrongolo, Barbara | | en_US |
| dc.date.accessioned | | 2006-10-20 | | en_US |
| dc.date.accessioned | | 2010-07-07T09:09:23Z | | - |
| dc.date.available | | 2010-07-07T09:09:23Z | | - |
| dc.date.issued | | 2006 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/33254 | | - |
| dc.description.abstract | | How well does a simple search on-the-job model fit the eighteen years of job and wage mobility of high school graduates? To answer this question we are confronted from the data with a prevalent non-compliance and exemptions from the minimum wage. We incorporate this observation in a job search model with three main ingredients: (i) search on-the-job; (ii) minimum wages, with potentially imperfect compliance or exemptions; and, (iii) exogenous wage growth on-the-job. We use panel data drawn from the NLSY79, US youth panel starting in 1979, to estimate the parameters of our simple job search model and, in particular, the extent of non-compliance/exemptions to the minimum wage. The model is solved numerically and we use simulated moments to estimate the parameters. The estimated parameters are consistent with the model and they provide a good fit for the observed levels and trends of the main job and wage mobility data. Furthermore, the estimated model indicates that the non-compliance and exemption rate with the federal minimum wage translates into a roughly 10% of jobs paying less than the minimum wage. Counterfactual experiment of increase of the compliance/non-exemption rate or the minimum wage shows a small effect on mean accepted wages but a significant negative effect on the non-employment rate. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | IZA Bonn | | en_US |
| dc.relation.ispartofseries | | IZA Discussion Papers 2076 | | en_US |
| dc.subject.jel | | J42 | | en_US |
| dc.subject.jel | | J63 | | en_US |
| dc.subject.jel | | J64 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | minimum wages | | en_US |
| dc.subject.keyword | | compliance | | en_US |
| dc.subject.keyword | | exemptions | | en_US |
| dc.subject.keyword | | job search | | en_US |
| dc.subject.keyword | | wage growth | | en_US |
| dc.title | | Job and wage mobility in a search model with non-compliance (exemptions) with the minimum wage | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 510782108 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | - |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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