Celebrating Scholarship and Creativity Day (2018-)

Document Type

Presentation

Publication Date

4-30-2026

Disciplines

Economics

Advisor

Sucharita Mukherjee

Abstract

This study examines whether differences in state minimum wage levels are associated with variation in teen employment across U.S. states in 2024. Using a cross-sectional regression framework, the analysis estimates the relationship between minimum wage policy and the employment rate of individuals aged 16–19 while controlling for educational attainment, demographic composition, income, and regional differences. The results indicate that higher minimum wages are associated with lower teen employment rates. Specifically, a one-dollar increase in the minimum wage is associated with an estimated 0.87 percentage-point decrease in teen employment, holding other factors constant. This result is statistically significant and economically meaningful, suggesting that minimum wage increases may reduce employment opportunities for lower-productivity workers such as teenagers. Additional findings show that higher levels of college attainment are positively associated with teen employment, while demographic composition variables are negatively associated with employment outcomes. The model explains a substantial portion of the variation in teen employment across states, indicating a strong overall fit. These findings contribute to the ongoing debate in labor economics by providing updated evidence on the employment effects of minimum wage policy using recent state-level data. The results highlight the importance of considering both policy design and labor market conditions when evaluating the impact of minimum wage increases on youth employment.

Additional Files
Final Paper.docx (279 kB)
Download

Included in

Economics Commons

Share

COinS