C.M. Kalenkowski and D.J. Lacombe
Journal of Labor Research, vol. 29, 2008, p. 303-317
The relationship between minimum wage increases and youth employment is investigated using United States county-level data and spatial econometric techniques. Results that account for spatial correlation show that a 10% increase in the effective minimum wage is associated with a 3.2% decrease in youth employment, a result that is 28% higher than the corresponding estimate that does not control for spatial correlation.