Br. Schiller, BELOW-MINIMUM-WAGE WORKERS - IMPLICATIONS FOR MINIMUM-WAGE MODELS, The Quarterly review of economics and finance, 34(2), 1994, pp. 131-143
Prior research on minimum wage employment tends to assume that coverag
e is either universal or easily estimated. In reality, coverage of tee
nagers and youth is low and results from a diversity of both employer
and employee characteristics. Failure to recognize this has biased pri
or estimates of noncompliance and displacement. This study uses the NL
SY to document the prevalence of below-minimum wage jobs among young w
orkers and show their links to both worker and employer characteristic
s.