The Impact of Higher Minimum Wage Rates on Teen Employment
Overview
This paper examines the effects of minimum wage increases on teenage employment across United States regions and states. The study analyzes empirical evidence from prior research to determine whether higher minimum wages reduce teen employment rates, affect work hours, and produce long-term labor market consequences such as reduced skill acquisition and experience accumulation.
What this research paper covers
- Introduction: Overview of state-level wage inequality and the need to empirically explore minimum wage policy impacts on teen employment
- Literature Review: Synthesis of recent research findings on minimum wage effects, including studies by Zavodny, Neumark and Nizalova, Adams et al., and Cadena examining employment rates, hours worked, and long-term labor market outcomes
- Analysis of Contributing Variables: Examination of factors restraining teen employment and how minimum wage policies affect youth employment behavior across different regions
Preview
The Impact of Higher Minimum Wage Rates on Teen Employment
Introduction
In the United States, every state has varying inequality in wage rates distribution considerably by the federal government. The states also have an existing diversification of unemployment based on significant factors such as age bracket and skill of the worker. This has led to a study on age bracket analysis, which could lead us into a deeper understanding of the impacts of wages rates on employment if the minimum wage was to be increased or raised higher. The policy of minimum higher wage rate is not diversely and extensively held up as different employees hire under their conditions and resource output, making the policy blindly unfounded amongst the teenagers. Verification on these wage policy impacts is, therefore, needed to empirically explore the matter as far as employment on teens is concerned.
This paper will disseminate the facts and logic that lie behind the policies by examining different factors that might be restraining employment in a specified group of workers (teens) spread across all states or regions. I will focus on these attributing variables to explain the result if the minimum wage rate is to be higher on employment behavior among the youths.
Review Of the Relevant Literature
In recent years, several researchers have been investigating the effects posed on employment by varying and fixed minimum wages across different regions. There are findings that support the idea that an increase in the minimum wage does not affect or reduce employment.