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The Response of Hours of Work to Increases in the Minimum Wage
Kenneth A. Couch and David C. Wittenburg
Southern Economic Journal
Vol. 68, No. 1 (Jul., 2001), pp. 171-177
Published by: Southern Economic Association
Stable URL: http://www.jstor.org/stable/1061520
Page Count: 7
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This paper examines the effect of minimum wage increases on the hours of work of teenagers (ages 16 to 19) using monthly data from the Current Population Survey. Our findings are consistent with the prediction from neoclassical theory that minimum wage increases have a negative effect on labor demand. However, the estimates we provide here for the elasticity of hours of teen labor demanded with respect to the minimum wage suggest that alternative estimates based on aggregate employment consistently understate the total impact of minimum wage increases on teenage labor utilization.
Southern Economic Journal © 2001 Southern Economic Association