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The Productivity-Enhancing Impacts of the Minimum Wage: Lessons from Denmark and New Zealand

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  • Colm McLaughlin
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    Abstract

    This article adds an international comparative perspective to the reflection on 100 years of minimum wage legislation in Britain by exploring the impact of minimum wage regulations and institutions in Denmark and New Zealand. In particular, it looks at the question of whether minimum wages can raise productivity through the 'shock effect'. It argues that while they will play a role, a supportive institutional framework is more important in providing coordinated solutions to issues of market failure, such as inadequate levels of training. The article suggests that sectoral bargaining institutions in low-paid sectors may have the potential to facilitate such coordination and enable the high-productivity model to emerge. Copyright (c) Blackwell Publishing Ltd/London School of Economics 2009.

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    Bibliographic Info

    Article provided by London School of Economics in its journal British Journal of Industrial Relations.

    Volume (Year): 47 (2009)
    Issue (Month): 2 (06)
    Pages: 327-348

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    Handle: RePEc:bla:brjirl:v:47:y:2009:i:2:p:327-348

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    Cited by:
    1. Deakin, Simon, 2013. "Addressing labour market segmentation : the role of labour law," ILO Working Papers 483448, International Labour Organization.
    2. Thomas Turner & Michelle O’Sullivan, 2013. "Economic Crisis and the Restructuring of Wage Setting Mechanisms for Vulnerable Workers in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(2), pages 197-219.

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