Our results indicate that both the relative employment and labor force participation rates of individuals below the age of 25 are about 10 and 12 percentage points higher, respectively, in countries with youth minimum wages, as compared to countries with uniform minimum wages.
We use information on the use and level of youth minimum wages, as compared to the level of adult minimum wages as well as to the median wage (i.e., the Kaitz index).
The number was even increased in 2006 from 173 items to 185 single items (including 84 quantifiable requirements and 49 quantifiable minimum requirements) as compared with 67 EUSOMA items (including 10 quantifiable minimum requirements).
As an alternative to the relative level of youth minimum wages as compared to the adult rate, we also present model outcomes with the youth minimum wage measured as a fraction of the median wage i.e., the Kaitz index.
The parameter values can thus be interpreted as the relative labor market performance of young individuals in countries with uniform and youth minimum wages, as compared to the relative labor market performance of their peers in countries without statutory minimum wages.
The optimization on model (d) results in a configuration with the minimum energy as compared to the other three models.
