منابع مشابه
Minimum Wages and Excessive Effort Supply
It is well-known that, in static models, minimum wages generate positive worker rents and, consequently, inefficiently low effort. We show that this result does not necessarily extend to a dynamic context. The reason is that, in repeated employment relationships, firms may exploit workers’ future rents to induce excessively high effort.
متن کاملLabor Supply Substitution and the Ripple Effect of Minimum Wages
This paper examines the potential causes of the “ripple effect” of minimum wages. This wage spillover is thought to result from labor demand substitution: where the rising minimum increases the demand for more-skilled workers who become relatively inexpensive. However, the rising minimum also affects the relative wages across hedonically distinct occupations because it lowers compensating wage ...
متن کاملMinimum Wages and Employment
We review the burgeoning literature on the employment effects of minimum wages – in the United States and in other countries – that was spurred by the new minimum wage research beginning in the early 1990s. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wag...
متن کاملMinimum Wages and Poverty
Textbook analysis tells us that in a competitive labor market, the introduction of a minimum wage above the competitive equilibrium wage will cause unemployment. This paper makes two contributions to the basic theory of the minimum wage. First, we analyze the effects of a higher minimum wage in terms of poverty rather than in terms of unemployment. Second, we extend the standard textbook model ...
متن کاملCity Minimum Wages
Local minimum wage laws are becoming common across U.S. cities, and their effects may be different from the effects of state or nationwide minimum wage policies. This paper studies the effect of changes in the minimum wage on spatial equilibriums in local labor markets. Using residence and workplace data for the United States, I analyze how commuting, residence, and employment locations change ...
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2010
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2010.06.004