Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94663
Authors: 
Keil, Manfred W.
Robertson, Donald
Symons, James
Year of Publication: 
2001
Series/Report no.: 
Claremont Colleges Working Papers in Economics 2001-08
Abstract: 
This paper investigates the effect of minimum wages on employment using a panel of US state-based data. We estimate a minimalist dynamic version of the specification implied by neo-classical theory. We find statistically and economically significant effects of minimum wages on youth employment. Unlike many other studies we find also significant effects on aggregate state employment. These results re-establish the conventional wisdom as existing before the work of Card-Krueger-Katz. The paper meets the methodological criticisms of this sort of panel study made by CKK. An important econometric innovation in this paper is to produce estimates allowing for cross-sectional correlation, which offers unbiased inference and potential efficiency gains.
Subjects: 
minimum wage
panel data
cross-sectional correlation
factor analysis
Document Type: 
Working Paper

Files in This Item:
File
Size
898.17 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.