Minimum Wage Effect On Teens

This paper reviewed the effect on the increase of the minimum wages on the hours of work of teens, ages 16-19. The increase in minimum wage had always been associated with labor utilization, however, few had tested the effect on labor demand. The hours worked would determine whether it would increase or decrease the labor demand. The authors found that increasing the minimum wage decreased the hours worked by teens because employers chose to decrease the hours of teen workers. Their findings matched the prediction from neoclassical theory that an increase in minimum wage had negative effect on labor demand.
Title: The Effect of Minimum Wage Rates on High School Completion