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Research ArticleArticles

Minimum Wage Effects in the Longer Run

David Neumark and Olena Nizalova
Journal of Human Resources, March 2007, XLII (2) 435-452; DOI: https://doi.org/10.3368/jhr.XLII.2.435
David Neumark
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Olena Nizalova
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Abstract

Exposure to minimum wages at young ages could lead to adverse longer-run effects via decreased labor market experience and tenure, and diminished education and training, while beneficial longer-run effects could arise if minimum wages increase skill acquisition. Evidence suggests that as individuals reach their late 20s, they earn less the longer they were exposed to a higher minimum wage at younger ages, and the adverse longer-run effects are stronger for blacks. If there are such longer-run effects of minimum wages, they are likely more significant than the contemporaneous effects on youths that are the focus of research and policy debate.

  • Received February 2006.
  • Accepted August 2006.

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Journal of Human Resources
Vol. XLII, Issue 2
31 Mar 2007
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Minimum Wage Effects in the Longer Run
David Neumark, Olena Nizalova
Journal of Human Resources Mar 2007, XLII (2) 435-452; DOI: 10.3368/jhr.XLII.2.435

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Minimum Wage Effects in the Longer Run
David Neumark, Olena Nizalova
Journal of Human Resources Mar 2007, XLII (2) 435-452; DOI: 10.3368/jhr.XLII.2.435
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