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The impact of minimum wages on hours and employment revisited

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Author Info
STROBL, Eric
WALSH, Frank

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Abstract

Using a standard production function the equilibrium hours per worker wage locus is shown to be u-shaped in a competitive labour market. A minimum wage mayth us either increase or decrease hours per worker and, by extension, the number of workers. We provide supporting evidence for this using data from Trinidad and Tobago. We argue that examining total employment or full-time equivalents is not a meaningful way to measure the employment response to a minimum wage.

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File URL: http://www.core.ucl.ac.be/services/psfiles/dp04/dp2004_23.pdf
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Publisher Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2004023.

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Date of creation: 01 May 2004
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Handle: RePEc:cor:louvco:2004023

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Related research
Keywords: minimum wages; hours; employment;

Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

References listed on IDEAS
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  1. Kenneth A. Couch & David C. Wittenburg, 2001. "The Response of Hours of Work to Increases in the Minimum Wage," Southern Economic Journal, Southern Economic Association, vol. 68(1), pages 171-177, July.
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This page was last updated on 2009-12-16.

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