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A Comment on "The consequences of the minimum wage when other wages are bargained over"

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  • Jürgen Wiemers

    ()
    (Institute for Employment Research (IAB))

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    Abstract

    Cahuc, Saint-Martin, and Zylberberg (2001) show numerically that a minimum wage hike can increase both skilled and unskilled employment in a right-to-manage wage bargaining setting. This comment demonstrates that this result crucially depends on an implicitly unrealistic choice for the skilled workers' alternative wage.

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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P32.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 30 (2010)
    Issue (Month): 1 ()
    Pages: 374-382

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    Handle: RePEc:ebl:ecbull:eb-09-00705

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    Related research

    Keywords: Minimum wage; Wage bargaining; Employment;

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    1. Sneessens, H. R. & Shadman-Mehta, F., . "Real wages, skill mismatch and unemployment persistence France, 1962-1989," CORE Discussion Papers RP -1142, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Alan Manning, 1994. "How do we Know that Real Wages are Too High?," CEP Discussion Papers dp0195, Centre for Economic Performance, LSE.
    3. Rebitzer, James B. & Taylor, Lowell J., 1995. "The consequences of minimum wage laws Some new theoretical ideas," Journal of Public Economics, Elsevier, vol. 56(2), pages 245-255, February.
    4. Cahuc, P. & Saint-Martin, A. & Zylberberg, A., 2001. "The consequences of the minimum wage when other wages are bargained over," European Economic Review, Elsevier, vol. 45(2), pages 337-352, February.
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