TY  - JOUR
AU  - Neumark,David
AU  - Wascher,William
TI  - Minimum Wages and Training Revisited
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6651
PY  - 1998
Y2  - July 1998
UR  - http://www.nber.org/papers/w6651
L1  - http://www.nber.org/papers/w6651.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 1998-12-01
AB  - Theory predicts that minimum wages will reduce employer-provided on-the-job training designed to improve workers' skills on the current job, but may increase the amount of training that workers obtain to qualify for a job.  We estimate the effects of minimum wages on the amount of both types of training received by young workers by exploiting cross-state variation in minimum wage increases.  The evidence provides considerable support for the hypothesis that higher minimum wages reduce training (especially formal training) aimed at improving skills on the current job. At the same time, there is little or no evidence that minimum wages increase training undertaken to qualify for or obtain jobs. Consequently, it appears that, overall, minimum wages substantially reduce training received by young workers.
ER  -