Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity

Publikation: Working paper › Forskning

Standard

Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity. / Kreiner, Claus Thustrup; Reck, Daniel; Skov, Peer Ebbesen.

2018.

Publikation: Working paper › Forskning

Harvard

Kreiner, CT, Reck, D & Skov, PE 2018 'Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity'. https://doi.org/10.2139/ssrn.3255446

APA

Kreiner, C. T., Reck, D., & Skov, P. E. (2018). Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity. CEBI Working Paper Series Nr. 05/18 https://doi.org/10.2139/ssrn.3255446

Vancouver

Kreiner CT, Reck D, Skov PE. Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity. 2018 okt. 18. https://doi.org/10.2139/ssrn.3255446

Author

Kreiner, Claus Thustrup ; Reck, Daniel ; Skov, Peer Ebbesen. / Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity. 2018. (CEBI Working Paper Series; Nr. 05/18).

Bibtex

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title = "Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity",
abstract = "We estimate the impact of youth minimum wages on youth employment by exploiting a large discontinuity in Danish minimum wage rules at age 18, using monthly payroll records for the Danish population. The hourly wage jumps up by 40 percent at the discontinuity. Employment falls by 33 percent and total input of hours decreases by 45 percent, leaving the aggregate wage payment almost unchanged. We show theoretically how the discontinuity may be exploited to evaluate policy changes. The relevant elasticity for evaluating the effect on youth employment of changes in their minimum wage is in the range 0.6-1.1.",
keywords = "minimum wage policy, employment, regression discontinuity",
author = "Kreiner, {Claus Thustrup} and Daniel Reck and Skov, {Peer Ebbesen}",
year = "2018",
month = oct,
day = "18",
doi = "10.2139/ssrn.3255446",
language = "English",
series = "CEBI Working Paper Series",
number = "05/18",
type = "WorkingPaper",

}

RIS

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T1 - Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity

AU - Kreiner, Claus Thustrup

AU - Reck, Daniel

AU - Skov, Peer Ebbesen

PY - 2018/10/18

Y1 - 2018/10/18

N2 - We estimate the impact of youth minimum wages on youth employment by exploiting a large discontinuity in Danish minimum wage rules at age 18, using monthly payroll records for the Danish population. The hourly wage jumps up by 40 percent at the discontinuity. Employment falls by 33 percent and total input of hours decreases by 45 percent, leaving the aggregate wage payment almost unchanged. We show theoretically how the discontinuity may be exploited to evaluate policy changes. The relevant elasticity for evaluating the effect on youth employment of changes in their minimum wage is in the range 0.6-1.1.

AB - We estimate the impact of youth minimum wages on youth employment by exploiting a large discontinuity in Danish minimum wage rules at age 18, using monthly payroll records for the Danish population. The hourly wage jumps up by 40 percent at the discontinuity. Employment falls by 33 percent and total input of hours decreases by 45 percent, leaving the aggregate wage payment almost unchanged. We show theoretically how the discontinuity may be exploited to evaluate policy changes. The relevant elasticity for evaluating the effect on youth employment of changes in their minimum wage is in the range 0.6-1.1.

KW - minimum wage policy

KW - employment

KW - regression discontinuity

U2 - 10.2139/ssrn.3255446

DO - 10.2139/ssrn.3255446

M3 - Working paper

T3 - CEBI Working Paper Series

BT - Do Lower Minimum Wages for Younger Workers Raise Their Employment? Evidence from a Danish Discontinuity

ER -

ID: 248849645