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Asymmetric Information Renders Minimum Wages Less Harmful

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Author Info
Ronnie Schöb ()
Marcel Thum ()

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Abstract

We show that a minimum wage introduced in the presence of asymmetric information about worker productivities will lead to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric information.

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File URL: http://www.cesifo.de/DocCIDL/cesifo1_wp2623.pdf
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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2623.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2623

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Related research
Keywords: minimum wages; unemployment; asymmetric information; labour market regulation;

Find related papers by JEL classification:
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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This page was last updated on 2009-11-3.

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