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Table 1, panel A describes the minimum wage levels specified in the wage agreement relevant for people working in supermarkets and grocery stores (called Butiksoverenskomsten), where around 44% of the employed 16- and 17-year-olds work in 2015 according to our data. For young workers, the basic salary is DKK 63; it is DKK 111 for adults. This corresponds to a difference of 55%. The minimum wage level is higher in evenings, on the weekend, and for overtime work, but the difference between young workers and adults is approximately 55% for all categories. Appendix table A.1 reports minimum wage levels for young workers and adults in other wage agreements. It reveals some variation across the wage agreements, but the variation is rather small compared to the difference in wage levels between young workers and adults. The degree of dispersion in wage floors is not exceptional in Denmark and is, for example, not very different from the United States (Cahuc, Carcillo, & Zylberberg, 2014).

Table 1.
Example: Wage Rates in Supermarkets and Grocery Stores
A. Collective Agreement
YoungAdultDifference
Basic salary 63 111 55% 
Evening 75 135 57% 
Overtime 94 166 55% 
Saturday 85 155 58% 
Sunday 88 160 58% 
B. Computed from Data (Monthly Earnings/Hours) 
 17 Years 18 Years Difference 
Data, mean 86 152 56% 
Data, median 85 151 56% 
A. Collective Agreement
YoungAdultDifference
Basic salary 63 111 55% 
Evening 75 135 57% 
Overtime 94 166 55% 
Saturday 85 155 58% 
Sunday 88 160 58% 
B. Computed from Data (Monthly Earnings/Hours) 
 17 Years 18 Years Difference 
Data, mean 86 152 56% 
Data, median 85 151 56% 

This table reports the hourly wages (DKK) for workers above and below age 18 in the supermarkets and grocery stores according to their collective bargaining agreement (Butiksoverenskomsten) in 2015 and according to our imputed wages using 2015 data (ES codes 4711, 4719). We observe that the percent changes in minimum wages in the collective bargaining agreement are very similar to the percent changes in the mean and median wage rates in our data. Percent differences are calculated using the midpoint method.

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