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Minimum Wages and the Joint Distribution Employment and Wages


This paper proposes a new procedure to jointly estimate the effect of the minimum wage on the distribution of wages and employment. The proposed approach offers a common framework for modelling the effect of the minimum wage on both employment and the distribution of wages using distribution regressions. Using Canadian data from 1997-2010, I find that for teenagers, increases in the minimum wages “pushes up” a large fraction of workers to the new minimum wage, but also yields some modest employment losses. There are no discernable impacts of the minimum wage for young adults.

Thomas Lemieux
Short bio: 

Thomas Lemieux is a professor of Economics at University of British Columbia. He received his B.A. at Université Laval in 1984, his M.A. at Queen’s University in 1985, and his Ph.D. at Princeton University in 1989. Professor Lemieux has held positions at MIT and the Université de Montréal prior to joining the faculty at UBC in 1999. He is a fellow of the Society of Labor Economists, a founding co-editor of the American Economic Journal: Applied Economics, and a fellow of the Royal Society of Canada. Most of his recent research focuses on the causes and consequences of the increase in earnings inequality in industrialized countries.

02 April 2012 - 17:00

IRVAPP/Fondazione Bruno Kessler - Via Santa Croce 77 - Trento


The presentation will be in English.