Minimum Wages and Employment: Reconsidering: the Use of a Time-Series Approach as an Evaluation Tool.

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 14.04.2009, 12:15 - 13:30


Presentation by 

Wang-Sheng Lee (Deakin University)


As the objective of the time-series approach used in the minimum wage literature is essentially in estimating a treatment effect of increasing the minimum wage, we employ a novel approach based on aggregate time-series data that allows us to determine if minimum wage changes have significant effects on employment. This involves the use of tests for structural breaks as a device for identifying discontinuities in the data which potentially represent treatment effects. In an application based on Australian data, the tentative conclusion is that the introduction of minimum wage legislation in Australia in 1997 and subsequent minimum wage increases appear to not have had any significant negative employment effects for teenagers.

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