Advanced Search
MyIDEAS: Login

Economic Growth and Welfare in a Simple Neoclassical OLG Model with Minimum Wage and Consumption Taxes support

Contents:

Author Info

  • Luciano Fanti
  • Luca Gori

Abstract

Since little attention, despite a long lasting debate, has been paid to the effects of minimum wages on economic growth and welfare, this paper investigates such effects within a textbook OLG framework with an unemployment insurance scheme financed at balanced budget by the government with a consumption tax on the young individuals. Some new results, so far escaped closer scrutiny by the economic growth literature and which may have interesting policy implications, emerge: i) introducing minimum wages may have a favourable impact on the long run output levels; ii) under suitable conditions a regulated-wage economy performs always better than a competitive economy, iii) despite the fact that the tax rate tends to reduce the consumption of the young, the long run lifetime welfare may be greater than in the competitive economy; iv) a welfare-maximising value of the minimum wage (and thus of the proportional consumption tax rate) is picked up.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.dse.ec.unipi.it/fileadmin/pdf/2007-68.pdf
Our checks indicate that this address may not be valid because: 500 Can't connect to www.dse.ec.unipi.it:80 (10060). If this is indeed the case, please notify ()
Download Restriction: no

Bibliographic Info

Paper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2007/68.

as in new window
Length:
Date of creation: 01 Jan 2007
Date of revision:
Handle: RePEc:pie:dsedps:2007/68

Contact details of provider:
Postal: Via Cosimo Ridolfi, 10 - 56124 PISA
Phone: +39 050 22 16 466
Fax: +39 050 22 16 384
Web page: http://www.dse.ec.unipi.it
More information through EDIRC

Related research

Keywords: Minimum wage; Unemployment; Consumption Tax; Neoclassical Economic Growth; Welfare;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Manuela Gussoni - Andrea Mangani, 2009. "The impact of public funding for innovation on firms' R&D investments: Do R&D cooperation and appropriability matter?," Discussion Papers 2009/90, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  2. Luciano Fanti & Luca Gori, 2009. "Longevity, fertility and PAYG pension systems sustainability," Discussion Papers 2009/77, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  3. Lorenzo Corsini & Elisabetta Olivieri, 2008. "Technological Change and the Wage Differential between Skilled and Unskilled Workers: Evidence from Italy," Discussion Papers 2008/73, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  4. Fanti, Luciano & Gori, Luca, 2010. "Child policy solutions for the unemployment problem," Economics Letters, Elsevier, vol. 109(3), pages 147-149, December.
  5. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  6. Fanti, Luciano & Gori, Luca, 2010. "On economic growth and minimum wages," MPRA Paper 25842, University Library of Munich, Germany.
  7. Luciano Fanti & Luca Gori, 2008. "PAYG pensions and economic cycles: exogenous versus endogenous fertility," Discussion Papers 2008/75, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  8. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.
  9. Luciano Fanti & Luca Gori, 2007. "Fertility, income and welfare in an OLG model with regulated wages," International Review of Economics, Springer, vol. 54(4), pages 405-427, December.
  10. Luca Gori, 2009. "Endogenous fertility, family policy and multiple equilibria," Discussion Papers 2009/79, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pie:dsedps:2007/68. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.