TY  - JOUR
AU  - Neumark,David
AU  - Wascher,William
TI  - Minimum Wage Effects on Employment and School Enrollment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4679
PY  - 1994
Y2  - March 1994
UR  - http://www.nber.org/papers/w4679
L1  - http://www.nber.org/papers/w4679.pdf
N1  - Author contact info:
David Neumark
Department of Economics
University of California at Irvine
3151 Social Science Plaza
Irvine, CA  92697
Tel: 949-824-8496
Fax: 949/824-2182
E-Mail: dneumark@uci.edu

William Wascher
Federal Reserve Board
Stop 66
Washington, DC 20551
Tel: 202/452-2812
Fax: 202/452-5296
E-Mail: william.l.wascher@frb.gov
M2  - featured in NBER digest on 1994-09-01
AB  - We argue in this paper that the focus on employment effects in recent studies of minimum wages ignores an important interaction between schooling, employment, and the minimum wage.  To study these linkages, we estimate a conditional logit model of employment and enrollment outcomes for teenagers using state-year observations for the period 1977 to 1989.  The results show a negative influence of minimum wages on school enrollment and a positive effect on the proportion of teens neither employed nor in school.  We further suggest that our results are consistent with substitution by employers of higher- for lower-skilled teenagers, with the displaced teens ending up both out of work and out of school.
ER  -