Efficiency Wages and the Economic Effects of the Minimum Wage: Evidence from a Low-Wage Labour Market
نویسنده
چکیده
We exploit a natural experiment provided by the 1999 introduction of the UK National Minimum Wage (NMW) to test for efficiency wage considerations in a low-wage sector, the UK residential care homes industry. Empirical results provide support to the wagesupervision trade-off prediction of the shirking model and suggest that the NMW may have operated as an efficiency wage. Our findings are in line with an efficiency wages rationale of a non-negative employment effect of the minimum wage which can explain the recent evidence from the care homes sector that the NMW introduction generated only moderate employment effects.
منابع مشابه
The Effect of Minimum Wage on Iran's Macroeconomic Variables in The Framework of a Dynamic Stochastic General Equilibrium Model
In this paper ,in order to investigate the economic effects of the minimum wage policy on macroeconomic variables in the framework of the new Keynesian theory, a dynamic stochastic equilibrium general (DSGE) model has been simulated and estimated for an open and small oil exporter economy conforming with the structure of Iran's economy in the range from 1370 to 1395 .In the above mentioned mode...
متن کاملWage Inequality in Developing Countries: An Examination of New Economic Geography Theory
The purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. More specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. The results indicate that this theory provides a good description of the spatial structure of w...
متن کاملآیا اثر افزایش حداقل دستمزدها بر تورم در اقتصاد ایران به وضعیت ادوار تجاری اقتصاد کلان مرتبط است؟
Over past decades there have been conflicting views on whether raising the minimum wage increases inflation. This study updates and expands earlier research into this subject and fills a void in the empirical literature by studying that the impacts of the minimum wage on inflation could be altered in the different economic situations. In framework of cost push inflation theoretical background, ...
متن کاملA Cross-national Analysis of Minimum Wage Effects
We estimate the employment effects of changes in national minimum wages using a pooled crosssection time-series data set comprising 17 OECD countries for the period 1975-2000, focusing on the impact of cross-country differences in minimum wage systems and in other labor market institutions and policies that may either offset or amplify the effects of minimum wages. The average minimum wage effe...
متن کاملLabour Supply and the Incidence of Income Tax on Wages
In the simple framework of a static model for equilibrium wages and labour supplies, we show that the incidence of income tax on equilibrium wages can be measured independently from the individual labour supply elasticity. This extends recent work by Blundell, Duncan and Meghir (1998) and Eissa and Liebman (1996), who estimate labour supply elasticities, and Gruber (1997), who estimates tax inc...
متن کامل