As explained in Chapter 6, a minimum-wage law distorts the market for low-wage labor. To reduce this distortion, some economists advocate a two-tiered minimum-wage system, with a regular minimum wage for adult workers and a lower, 'subminimum' wage for teenage workers. Give two reasons a single minimum wage might distort the labor market for teenage workers more than it would the market for adult workers.
Minimum wage laws distort the market by increasing the number of workers and decreasing the number of jobs available. Teenagers have a low marginal product, ...
Minimum wage labor market distortions for teenage workers.