Effects of Minimum Wages on Youth Employment: the Importance of Accounting for Spatial Correlation

被引:0
作者
Charlene M. Kalenkoski
Donald J. Lacombe
机构
[1] Ohio University,Department of Economics
[2] Ohio University,Department of Economics
来源
Journal of Labor Research | 2008年 / 29卷
关键词
Spatial econometrics; Spatial autoregressive model; Minimum wage; Youth employment;
D O I
暂无
中图分类号
学科分类号
摘要
The relationship between minimum wage increases and youth employment is investigated using county-level data and spatial econometric techniques. Results that account for spatial correlation indicate that a 10% increase in the effective minimum wage is associated with a 3.2% decrease in youth employment, a result that is 28% higher than the corresponding estimate that does not control for spatial correlation. Thus, estimates that do not take into account spatial correlation may significantly underestimate the negative effect of the minimum wage on teenage employment. Improperly controlling for factors that vary systematically over space can lead to incorrect inferences and misinform policy.
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页码:303 / 317
页数:14
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