Do minimum wage hikes negatively impact students’ summer employment?

New research in Contemporary Economic Policy indicates that rising minimum wages in a state are associated with reduced summer employment for college students, the time when students tend to work the most.

The study, which involved data from a public university and quarterly work records from Washington State, found that college students’ employment and hours worked decrease as minimum wages rise in the summer quarter. Students experiencing the largest reductions are those with little or no work experience and non-local students.

Several explanations may account for the study’s findings and should be examined in future research.

“This study offers some of the first empirical evidence on the employment of inexperienced workers, particularly those entering the labor market for the first time, when minimum wages rise,” said corresponding author Adam Wright, PhD, of Western Washington University.

URL upon publication: https://onlinelibrary.wiley.com/doi/10.1111/coep.12687

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First published in 1982, Contemporary Economic Policy publishes scholarly research and analysis on important policy issues facing society. The journal provides insight into the complexity of policy decisions and communicates evidence-based solutions in a form accessible to economists and policy makers. Contemporary Economic Policy provides a forum for debate by enhancing our understanding of key issues and methods used for policy analysis.

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