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What are the outcomes on employment for youths when minimum wages increase?
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I'm not sure how common it is across countries but in the UK there is a different wage rate between under 18, 18-20, 21-24, and 25 years old. What would be the effects of equalising the wage across every age level, and increasing one but not others?

I would think that if the differences between the wage rates gets smaller then companies would substitute youths for older people due to the reduced opportunity cost of those older (perhaps more productive) workers.

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5 years ago