Minimum wage, on-the-job search and employment: On the sectoral and aggregate equilibrium effect of the mandatory minimum wage

► We study the minimum wage impact in a segmented labor market with career stages. ► A rise in the minimum wage reduces the creation of less qualified jobs. ► Workers keep less qualified jobs by reducing their on-the-job search intensity. ► Ambiguous impact on unqualified employment. ► Negative impact on overall employment and global output.