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| Author: | Pereira, S.C. |
| Title: | The impact of minimum wages on youth employment in Portugal |
| Journal: | European Economic Review
2003 : APR, VOL. 47:2, p. 229-244 |
| Index terms: | Pay Minimum wage Young workers Employment Portugal Europe |
| Language: | eng |
| Abstract: | In January 1987, the legal minimum wage for workers aged btw. 18-19 in Portugal was raised by 49.3 per cent. This shock is used as a "natural experiment" to evaluate the impact of the minimum wage change on teenagers' employment. The method is to compare, based on firm-level microdata, the employment growth of 1819-year-old workers with employment growth of older workers. The main findings are that the increase in the minimum wage significantly reduced employment of 18-19 year olds, but increased employment of 2025 year olds. |
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