Does the Minimum Wage Cause Inefficient Rationing?

does minimum wage cause inflation?

this paper reviews the relationship between inflation rate and minimum wage in iran’s economy over the 1969-2005. according to the economic literature, there is a narrow relationship between inflation rate and minimum wage. some economists believe in increased inflation due to minimum wage. the other group of economists considers the increased inflation as a cause for increasing minimum wage. t...

Does The Minimum Wage Affect Welfare Caseloads?

Although minimum wages are advocated as a policy that will help the poor, few studies have examined their effect on poor families. This paper uses variation in minimum wages across states and over time to estimate the impact of minimum wage legislation on AFDC caseloads, thus directly assessing whether minimum wages benefit a group they are intended to help. We find that the elasticity of the w...

Does Wage Inflation Cause Price Inflation?

Uganda’s Minimum Health Care Package: Rationing within the Minimum?

Essential/minimum health care packages (MHCP) have appeared on the primary health care scene as a means of setting priorities for national health budgets. A technical approach of cost-effectiveness was sought to guide the political and group bargaining approaches. In Uganda, the application of the cost-effectiveness techniques seem not to have had an effect on the priority setting. A package of...

Stagnation and minimum wage: Optimal minimum wage policy in macroeconomics

This paper argues how an increase in minimum wage affects employment, consumption, and social welfare with dynamic general equilibrium model without market frictions. The study demonstrates that a minimum wage hike reduces an actual unemployment rate and has positive effects on an employment rate under the demand-shortage economy whereas they do not under a non-demand shortage economy. The stud...