Young and Out of Work: An Analysis of Teenage Summer Employment, 1972-2012

Vedder and Gallaway concluded that inexperienced youths were among “the biggest losers from state intervention” in labor markets. Our results suggest that same conclusion may be reached about teen summer jobs over the past four decades. Even after controlling for the adverse effects on teen summer employment of increased labor force participation by senior workers, cyclical macroeconomic factors, and, for male teens, the decline in manufacturing employment, increases in the real value of the minimum wage are found to have detrimental effects on teen employment, particularly for black teens.

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