Description: Department Seminar Job Market Practice Talk: Kunwon Ahn
Contact Person: Otavio Bartalotti
Title: "The Effect of Relaxation in Labor Laws on Youth Employment: Evidence from Wisconsin"
Abstract: This study examines the effect of loosening labor laws on youth employment with a particular focus on the labor supply of youth aged 16 and 17. We apply the synthetic control method (SCM) to American Community Survey (ACS) data to identify the causal relationship between the relaxation of labor laws and youth labor market outcomes. We find that the relaxation has a positive impact on the extensive margin of the labor supply of youth aged 16 and 17 in Wisconsin, while it has little effect on the intensive margin. The empirical results also suggest that relaxation in labor laws has a heterogeneous impact on subsamples stratified by gender, race, and wealth quantiles in the household.