The Minimum Wage, Turnover, and the Shape of the Wage Distribution

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IZA Seminar

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

Date: 19.03.2015, 12:15 - 13:30


Presentation by 

Thomas Lemieux (University of British Columbia, Vancouver)


This paper proposes an estimation procedure to jointly model the effect of the minimum wage on the probability of employment and the shape of the wage distribution. Minimum wage effects are further broken down into effects for workers moving out of employment, workers moving into employment, and workers continuing in employment. Using data from the Canadian Labour Force Survey, we find substantial distributional effects of the minimum wage, and important differences in these effects across the three groups. We also discuss what models of the labor market are consistent with these findings

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