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Studies of the Effect of Minimum Wages on Teenage Employment

question 32

Essay

Studies of the effect of minimum wages on teenage employment typically regress the teenage employment to population ratio on the real minimum wage or the minimum wage relative to average hourly earnings using OLS. Assume that you have a cross section of United States for two years. Do you think that there are problems with simultaneous equation bias?


Definitions:

Compromising

The act of finding a middle ground through mutual concessions in a dispute or negotiation.

Personalities

Personalities encompass the unique combination of emotional, attitudinal, and behavioral response patterns of an individual, contributing to their consistent behaviors and actions in various situations.

Irreconcilable

Describing differences or disputes that are so great they cannot be resolved or reconciled.

Avoidance

A behavioral response aimed at evading unpleasant or harmful situations, tasks, or interactions.

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