Research and analysis

Impact of the National Minimum Wage on young workers' employment. Fidrmuc, Tena

Analysis of the impact of the National Minimum Wage (NMW) on the employment of young workers according to size and sector of firms.



This report considers whether the effect of NMW rules on young workers differs across organisations of different size, or sectors of employment.

The findings suggest that if the NMW has an adverse effect on employment, it is more likely to be the case for workers in the service sector than in manufacturing. This result probably reflects the greater incidence of low-wage jobs in the service sector.