Minimum Wage Legislation, Productivity and Employment
AbstractThe effects of minimum wage legislation are analysed with the assumptions that firms are able to alter the working conditions of their employees, and that workers have different preferences about the characteristics of their job. The main findings tally with Card and Krueger's (1995) recent somewhat puzzling empirical evidence about the effects of changes in minimum wage. I find that the effects of changes in the minimum wage on employment are limited, that there is a positive spillover on high-wage workers, and that there is bunching of workers at the minimum wage. Copyright 1999 by The London School of Economics and Political Science
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 66 (1999)
Issue (Month): 264 (November)
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- Petrakis, Emmanuel & Vlassis, Minas, 2003. "Minimum wages in national and internationally integrated economies," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 257-265, April.
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- Strobl, Eric & Walsh, Frank, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Economics Letters, Elsevier, vol. 94(1), pages 83-89, January.
- Strobl, Eric & Walsh, Frank, 2011. "The ambiguous effect of minimum wages on hours," Labour Economics, Elsevier, vol. 18(2), pages 218-228, April.
- Eric Strobl & Frank Walsh, 2010. "The Minimum Wage and Hours per Worker," Working Papers 201028, School Of Economics, University College Dublin.
- STROBL, Eric & WALSH, Frank, 2003. "Dealing with monopsony power: the case for using employment subsidies," CORE Discussion Papers 2003079, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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