Minimum Wages and Human Capital Investment: A Meta‐Regression Analysis

ABSTRACT We apply meta‐regression analysis to assess the effect of the minimum wage on two types of human capital, formal education enrolment and on‐the‐job training, using 892 reported estimates of these effects. On average, raising the minimum wage reduces enrolment in all countries assessed. The minimum wage has a somewhat moderate positive effect on training in the United States and no significant training effect elsewhere. There is no publication bias in the formal education and modest bias in the training literature. Heterogeneity among reported estimates is primarily driven by data differences, alternative specifications and measures of the relevant variables.