The impact of minimum wages on the youth labour market: an international literature review for the Low Pay Commission

A comprehensive literature survey is conducted to evaluate the international evidence on the effects of minimum wages on youth employment. Only minimal employment effects were found; although there is some evidence that increases in minimum wage rates for 16-17 year olds affects employment, the effect tends to disappear with age. Minimum wages are more likely to have a negative effect on the youth labour market where there are no separate rates for younger workers. The impact may be positive where youth rates were set at an appropriate level, while any adverse effects may be offset by governmental actions to support employment for young workers.