CHAPTER 6SUPPLY, DEMAND, AND GOVERNMENT POLICIES127The minimum wage has its greatest impact on the market for teenage labor.The equilibrium wages of teenagers are low because teenagers are among theleast skilled and least experienced members of the labor force. In addition,teenagers are often willing to accept a lower wage in exchange for on-the-jobtraining. (Some teenagers are willing to work as “interns” for no pay at all. Be-cause internships pay nothing, however, the minimum wage does not apply tothem. If it did, these jobs might not exist.) As a result, the minimum wage ismore often binding for teenagers than for other members of the labor force.Many economists have studied how minimum-wage laws affect the teenagelabor market. These researchers compare the changes in the minimum wage overtime with the changes in teenage employment. Although there is some debateabout how much the minimum wage affects employment, the typical study finds
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