The Impact of Minimum Wages on Unemployment Duration: Estimating the Effects Using the Displaced Worker Survey

The Impact of Institutional Context, Education and Labour Market Policies on Early School Leaving: a comparative analysis ofEUcountries

“…() concluded that a higher minimum wage led to greater dropout because young people who were considering leaving school were attracted by the high minimum wage, while the potential wage gain from further education was reduced. This view was challenged by Pedace and Rohn () who took into account the effect of minimum wages on unemployment duration. They concluded that higher minimum wages resulted in higher unemployment risks for ESLrs.…”

Who Is Affected by the Minimum Wage?

“…Of the three hours studies, one finds no effect (Connolly and Gregory ), and two mixed effects (Orrenius and Zavodny ; Stewart and Swaffield ). Finally, Pedace and Rohn () find that higher minimum wages are associated with longer unemployment duration for older women and women in lower skilled occupations. Overall, the evidence for women's employment is mixed, with several studies finding a negative effect on the employment and hours of some groups of women, while other research finds no decline in employment or hours for most women.…”

“…Stewart and Swaffield () report a negative hours effect after one year for British men bound by the minimum wage, Orrenius and Zavodny () report no effect in the United States for native‐born or immigrant men with low education. In addition, Pedace and Rohn () report that increases in the minimum wage increase unemployment duration for men without high school degrees and reduce unemployment duration for older men and those with a high school degree.…”