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Minimum Wage Legislation, Productivity and Employment

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  • De Fraja, Gianni

Abstract

The 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 Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 66 (1999)
Issue (Month): 264 (November)
Pages: 473-88

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Handle: RePEc:bla:econom:v:66:y:1999:i:264:p:473-88

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Citations

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Cited by:
  1. Hristos Doucouliagos & T. D. Stanley, 2009. "Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 406-428, 06.
  2. Strobl, Eric & Walsh, Frank, 2002. "Getting It Right: Employment Subsidy or Minimum Wage?," IZA Discussion Papers 662, Institute for the Study of Labor (IZA).
  3. Strobl, Eric & Walsh, Frank, 2008. "The Ambiguous Effect of Minimum Wages on Workers and Total Hours," IZA Discussion Papers 3643, Institute for the Study of Labor (IZA).
  4. Strobl, Eric & Walsh, Frank, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Economics Letters, Elsevier, vol. 94(1), pages 83-89, January.
  5. Strobl, Eric & Walsh, Frank, 2011. "The ambiguous effect of minimum wages on hours," Labour Economics, Elsevier, vol. 18(2), pages 218-228, April.
  6. Bird, Kelly & Manning, Chris, 2008. "Minimum Wages and Poverty in a Developing Country: Simulations from Indonesia's Household Survey," World Development, Elsevier, vol. 36(5), pages 916-933, May.
  7. Eliav Danziger & Leif Danziger, 2014. "A Pareto-Improving Minimum Wage," CESifo Working Paper Series 4762, CESifo Group Munich.
  8. Daniel Cardona & Fernando Sánchez-Losada, 2006. "Unions, qualification choice, and output," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 50-76, January.
  9. Rubery, Jill, 2003. "Pay equity, minimum wage and equality at work," ILO Working Papers 366872, International Labour Organization.
  10. Eric Strobl & Frank Walsh, 2010. "The Minimum Wage and Hours per Worker," Working Papers 201028, School Of Economics, University College Dublin.
  11. Daniel Cardona & Fernando Sanchez Losada, 2003. "Union Power, Minimum Wage Legislation, Endogenous Labor Supplies and Production," Working Papers in Economics 105, Universitat de Barcelona. Espai de Recerca en Economia.
  12. 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.
  13. Danziger, Eliav & Danziger, Leif, 2014. "A Pareto-Improving Minimum Wage," IZA Discussion Papers 8123, Institute for the Study of Labor (IZA).
  14. 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).
  15. T.D. Stanley & Chris Doucouliagous, 2006. "Publication Bias in Minimum-Wage Research? Card and Krueger Redux," Economics Series 2006_16, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.

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