Arbeitspapier

UK national minimum wage and labor market outcomes of young workers

The UK national minimum wage (NMW) is age-specific with the most important threshold at the age of 22 (lowered to 21 from 2010 onwards) when workers become eligible for the adult rate. The authors estimate the impact of this threshold on employment by means of a regression discontinuity analysis. Because this threshold is known in advance, they investigate the presence of discontinuities in both the level and the slope of employment probabilities at different ages around the threshold. Their results indicate that turning 22 does not significantly change the employment probability. However, they find a significant change in the slope of the probability of being employed around one year before, suggesting a smooth deterioration of employment probability before turning 22 rather than a sudden change at a particular age. This finding is confirmed by a differencein- difference analysis. However, no such effect can be found during the period preceding the introduction of the NMW.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2017-80

Klassifikation
Wirtschaft
Labor Force and Employment, Size, and Structure
Labor Demand
Thema
Minimum wage
employment
young workers
regression discontinuity design

Ereignis
Geistige Schöpfung
(wer)
Fidrmuc, Jan
Tena, Juan de Dios
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2017

Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Fidrmuc, Jan
  • Tena, Juan de Dios
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2017

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