TY - JOUR AU - Abowd,John M. AU - Kramarz,Francis AU - Lemieux,Thomas AU - Margolis,David N. TI - Minimum Wages and Youth Employment in France and the United States JF - National Bureau of Economic Research Working Paper Series VL - No. 6111 PY - 1997 Y2 - July 1997 UR - http://www.nber.org/papers/w6111 L1 - http://www.nber.org/papers/w6111.pdf N1 - Author contact info: John M. Abowd School of Industrial and Labor Relations 261 Ives Hall Cornell University Ithaca, NY 14853 Tel: 607/255-8024 Fax: 866/873-9078 E-Mail: John.Abowd@cornell.edu Francis Kramarz CREST-INSEE 15 blvd Gabriel Peri Malakoff CEDEX, 92245 FRANCE E-Mail: kramarz@ensae.fr Thomas Lemieux Department of Economics University of British Columbia #997-1873 East Mall Vancouver, BC V6T 1Z1 CANADA Tel: 604/822-2092 Fax: 604/822-5915 E-Mail: thomas.lemieux@ubc.ca David N. Margolis M1 - published as John M. Abowd, Francis Kramarz, Thomas Lemieux, David N. Margolis. "Minimum Wages and Youth Employment in France and the United States ," in David G. Blanchflower and Richard B. Freeman, editors, "Youth Employment and Joblessness in Advanced Countries" University of Chicago Press (2000) M2 - featured in NBER digest on 1998-04-01 AB - We use longitudinal individual wage and employment data for young people in France and the United States to investigate the effect of intertemporal changes in an individual's status vis-…-vis the real minimum wage on employment transition rates. We" find that movements in both French and American real minimum wages are associated with relatively important employment effects in general, and very strong effects on workers employed at the minimum wage. In the French case, albeit imprecisely estimated, a 1% increase in the real minimum wage decreases the employment probability of a young man currently employed at the minimum wage by 2.5%. In the United States, a decrease in the real minimum of 1% increases the probability that a young man employed at the minimum wage came from nonemployment by 2.2%. These effects get worse with age in the United States, and are mitigated by eligibility for special employment promotion contracts in France. ER -