Economics, Econometrics and Finance
4 years ago

Minimum wage hike raises wages but reduces employment for young men.

RePEc: Research Papers in Economics
Estimating the Effects of the Minimum Wage Using the Introduction of Indexation
Daiji Kawaguchi, Yuko Mori

Paper Summary

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The minimum wage increase in Japan raised wages for low-wage workers but reduced employment for less-educated young men. This was found by studying the effects of the minimum wage hike induced by linking it to the local cost of living. The research showed that the job flows of prime-age men and women decreased as a result of the minimum-wage increase.