The impact of age-specific minimum wages on youth employment and education: A regression discontinuity analysis

Arbeitspapier

We exploit an age-specific minimum wage rule - which sets a lower minimum wage for workers of age 15 than the adult minimum wage paid to workers of age 16 and above - and its abolition to estimate the causal effect of a minimum wage increase on youth employment and education in Turkey. Using a regression discontinuity design in tandem with a difference-in-discontinuities analysis, we find that increasing the minimum wage reduces the employment probability of young males by 2.5-3.1 percentage points. We also document that, initially, the minimum wage increase does not lead to a major change in high school enrollment, while the likelihood of transitioning into "neither in employment nor in education and training" (NEET) category notably increases. However, in the medium term, the NEET effect is transitory; school enrollment increases over time and absorbs the negative employment effect. We argue that policy effects have mostly been driven by demand-side forces rather than supply side.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: GLO Discussion Paper ; No. 973

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Wages, Compensation, and Labor Costs: Public Policy
• Thema: Age-specific minimum wages ; youth employment ; education ; regression discontinuity design

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dayioglu, Meltem ; Kucukbayrak, Muserref ; Tumen, Semih
• Ereignis: Veröffentlichung
• (wer): Global Labor Organization (GLO)
• (wo): Essen
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/245914
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ