Minimum Wages and Youth Employment: Evidence from the Finnish Retail Trade Sector
Article first published online: 12 MAY 2009
© Blackwell Publishing Ltd/London School of Economics 2009
British Journal of Industrial Relations
Volume 47, Issue 2, pages 388–405, June 2009
How to Cite
Böckerman, P. and Uusitalo, R. (2009), Minimum Wages and Youth Employment: Evidence from the Finnish Retail Trade Sector. British Journal of Industrial Relations, 47: 388–405. doi: 10.1111/j.1467-8543.2009.00720.x
- Issue published online: 12 MAY 2009
- Article first published online: 12 MAY 2009
- Final version accepted on 18 December 2008.
Following an agreement between the trade unions and the employer organizations in 1993, Finnish employers could temporarily pay less than the existing minimum wage for young workers. We examine the effects of these minimum wage exceptions by comparing the changes in wages and employment of the groups whose minimum wages were reduced with simultaneous changes among slightly older workers for whom the minimum wages remained unchanged. Our analysis is based on payroll record data and minimum wage agreements from the retail trade sector. The results show that average wages in the eligible group declined only modestly. We find no significant effects on employment.