From Kalenkoski and Lacombe comes this new paper on the effect of the minimum wage on teenage employment.
Abstract: 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.
I could not find an ungated version. Via DOL
Update: Here's an ungated version, via Prof. Lacombe.
Thank you for mentioning our paper. An ungated version can be located here:
http://oak.cats.ohiou.edu/~lacombe/papers/jlr294.pdf
Posted by: Donald Lacombe | November 20, 2008 at 08:12 PM