Effects of collective minimum wages on youth employment in Austria

This paper analyzes the impact of collective minimum wages on youth employment for 14 sectors of the Austrian economy, taking into account the possibility of nonlinearity. We find that when the real index of minimum wage rises above a certain point, negative employment effects for young individuals...

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Bibliographic Details
Published in:Empirica 2017-11, Vol.44 (4), p.781-805
Main Authors: Christl, Michael, Köppl-Turyna, Monika, Kucsera, Dénes
Format: Article
Language:English
Subjects:
Econometrics
Economic models
Economics
Economics and Finance
Employment
European Integration
Industrial Organization
International Economics
Macroeconomics/Monetary Economics//Financial Economics
Minimum wage
Original Paper
Public Finance
Wages & salaries
Youth employment
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Summary:This paper analyzes the impact of collective minimum wages on youth employment for 14 sectors of the Austrian economy, taking into account the possibility of nonlinearity. We find that when the real index of minimum wage rises above a certain point, negative employment effects for young individuals (aged between 19 and 25 years) can be expected in Austria. In five of seven market sectors the minimum wage lies above the optimal level that maximizes the employment of young workers.
ISSN:0340-8744
1573-6911
DOI:10.1007/s10663-016-9341-7