The impact of age-specific minimum wages on youth employment and education: a regression discontinuity analysis

Purpose Using a regression discontinuity design in tandem with difference-in-discontinuities analysis, the study finds that increasing minimum wage reduces employment probability of young males by 2.5–3.1 percentage points. Design/methodology/approach The authors exploit an age-specific rule – which sets lower for workers age 15 than adult paid to 16 and above its abolition estimate causal effect increase on youth education Turkey. Findings also document that, initially, does not lead major change high school enrollment, while likelihood transitioning into “neither nor training” (NEET) category notably increases. However, medium term, NEET is transitory; enrollment increases over time absorbs negative effect. Originality/value argue policy effects have mostly been driven demand-side forces rather supply side.