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A Comment on "Labor Markets, Unemployment, and Minimum Wages: A New View."

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  • Chung-cheng Lin

    (Institute of Economics, Academia Sinica)

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    Abstract

    Palley (1995) recently built a job-hour model to provide us with a new view regarding the reason for unemployment and the positive employment effect of a minimum wage hike. This paper points out some difficulties with his explanation of his paper's findings and tries to provide an alternative explanation.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume27/V27N1P71_82.pdf
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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 27 (2001)
    Issue (Month): 1 (Winter)
    Pages: 71-82

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    Handle: RePEc:eej:eeconj:v:27:y:2001:i:1:p:71-82

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    Keywords: Employment; Unemployment; Wage;

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(1), pages 1-22, January.
    2. Baker, Michael & Benjamin, Dwayne & Stanger, Shuchita, 1999. "The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(2), pages 318-50, April.
    3. David Card & Alan Krueger, 1993. "Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 694, Princeton University, Department of Economics, Industrial Relations Section..
    4. James B. Rebitzer & Lowell J. Taylor, 1991. "The Consequences of Minimum Wage Laws: Some New Theoretical Ideas," NBER Working Papers 3877, National Bureau of Economic Research, Inc.
    5. Manning, Alan, 1995. "How Do We Know That Real Wages Are Too High?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(4), pages 1111-25, November.
    6. Leslie, Derek, 1984. "The Productivity of Hours in U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 486-90, August.
    7. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    8. Dickens, William T & Lundberg, Shelly J, 1993. "Hours Restrictions and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-92, February.
    9. Bhaskar, V & To, Ted, 1999. "Minimum Wages for Ronald McDonald Monopsonies: A Theory of Monopsonistic Competition," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(455), pages 190-203, April.
    10. Deere, Donald & Murphy, Kevin M & Welch, Finis, 1995. "Employment and the 1990-1991 Minimum-Wage Hike," American Economic Review, American Economic Association, American Economic Association, vol. 85(2), pages 232-37, May.
    11. Kinoshita, Tomio, 1987. "Working Hours and Hedonic Wages in the Market Equilibrium," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(6), pages 1262-77, December.
    12. Thomas I. Palley, 1995. "Labor Markets, Unemployment, and Minimum Wages: A New View," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 21(3), pages 319-326, Summer.
    13. Kim, Taeil & Taylor, Lowell J, 1995. "The Employment Effect in Retail Trade of California's 1988 Minimum Wage Increase," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 13(2), pages 175-82, April.
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