Original scientific paper
https://doi.org/10.1080/1331677X.2023.2217880
The effects of minimum wage on unemployment for OECD countries: a dynamic fixed effects panel threshold model perspective
María del Carmen Ramos-Herrera
Abstract
The purpose of this paper is to shed new light on the incidence
of the minimum wage on the unemployment rate on 33 OECD
countries during 1980–2020 period applying a dynamic fixed
effects panel threshold model. Controlling for the usual macroeconomic
and demographic factors, the best model estimates a
minimum wage threshold of 9.1667. Specifically, the higher the
minimum wage the lower the unemployment rate, however the
marginal effect is larger above the threshold value. A singlethreshold
model is identified for 25–74, secondary and long-term
unemployment. The possibility of a double-threshold model is
rule out for all the unemployment indicators.
Keywords
Minimum wage; unemployment; dynamic fixed effect panel threshold model
Hrčak ID:
314885
URI
Publication date:
9.6.2023.
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