Abstract
The purpose of this paper is to shed new light on the incidence of the minimum wage on the unemployment rate on 33 OECD countries during 1980–2020 period applying a dynamic fixed effects panel threshold model. Controlling for the usual macroeconomic and demographic factors, the best model estimates a minimum wage threshold of 9.1667. Specifically, the higher the minimum wage the lower the unemployment rate, however the marginal effect is larger above the threshold value. A single-threshold model is identified for 25–74, secondary and long-term unemployment. The possibility of a double-threshold model is rule out for all the unemployment indicators.
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