This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

On economic growth and minimum wages

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Luciano Fanti
Luca Gori

Additional information is available for the following registered author(s):

Abstract

We offer an analysis of the existence of a positive relationship between minimum wages and economic growth in a fairly standard general equilibrium, one-sector, two-period overlapping generations model, where the usual Romer-typed knowledge spill-over mechanism in production represents the engine of endogenous growth. It is shown that – contrary to the conventional view which has failed to pay due attention to dynamic contexts with labour market rigidities – the minimum-wage economy may grow faster than the competitive-wage economy in spite of a reduced employment rate and, in particular, a growth-maximising minimum wage does exist. A straightforward message is therefore that policymakers may appropriately use minimum wage policies to promote economic growth and individuals’ welfare.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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/pubblicazioni/dsedps/files/2009-78.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2009/78.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 01 Jan 2009
Date of revision:
Handle: RePEc:pie:dsedps:2009/78

Contact details of provider:
Postal: Via Cosimo Ridolfi, 10 - 56124 PISA
Phone: 050/945111
Fax: 050/598040
Web page: http://www.dse.ec.unipi.it
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords: Endogenous growth; Minimum wage; Unemployment; OLG model;

Other versions of this item:

Find related papers by JEL classification:
H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Akos Dombi, 2006. "Scale Effects in Idea-Based Growth Models: a Critical Survey," Discussion Papers 2006/60, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  2. Luciano Fanti & Luca Gori, 2009. "Longevity, fertility and PAYG pension systems sustainability," Discussion Papers 2009/77, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  3. Luciano Fanti & Luca Spataro, 2007. "Economic Growth and Welfare in a Simple Neoclassical OLG Model with Minimum Wage and Consumption Taxes support," Discussion Papers 2007/67, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  4. Alga Foschi, 2004. "The coast port industry in the USA: a key factor in the process of economic growth," Discussion Papers 2004/46, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  5. Nicola Meccheri, . "Performance-related-pay nel pubblico impiego: un'analisi economica," Discussion Papers 2003/3, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  6. Gaetano Alfredo Minerva, 2004. "How Do Cost (or Demand) Asymmetries and Competitive Pressure Shape Trade Patterns and Location?," Discussion Papers 2004/40, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  7. Nicola Meccheri, 2004. "Wages Behaviour and Unemployment in Keynes and New Keynesians Views. A Comparison," Discussion Papers 2004/41, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
    Other versions:
  8. Gaetano Alfredo Minerva, . "Location and Horizontal Differentiation under Duopoly with Marshallian Externalities," Discussion Papers 2003/10, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  9. Alga D. Foschi, 2006. "La concentrazione industriale per i sistemi di trasporto sostenibile," Discussion Papers 2006/64, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  10. Luciano Fanti & Luca Gori, 2009. "Child policy solutions for the unemployment problem," Discussion Papers 2009/76, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  11. Mario Morroni, 2006. "Complementarities among capability, transaction and scale-scope considerations in determining organisational boundaries," Discussion Papers 2006/58, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  12. Mario Morroni, 2006. "Innovative activity, substantive uncertainty and the theory of the firm," Discussion Papers 2006/59, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  13. Lorenzo Corsini, 2006. "Firms' Entry, Imperfect Competition and Regulation," Discussion Papers 2006/57, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  14. Luciano Fanti & Luca Gori, 2008. "‘Backyard’ technology and regulated wages in a neoclassical OLG growth model," Discussion Papers 2008/74, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  15. Luciano Fanti & Luca Gori, 2008. "Fertility and regulated wages in an OLG model of neoclassical growth: Pensions and old age support," Discussion Papers 2008/70, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  16. Tamara Fioroni, 2006. "Life Expectancy, Health Spending and Saving," Discussion Papers 2006/62, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  17. Andrea Mario Lavezzi, 2003. "Complex Dyanmics in a Simple Model of Economic Specialization," Computing in Economics and Finance 2003 170, Society for Computational Economics.
  18. Davide Fiaschi & Andrea Mario Lavezzi, . "On the Determinants of Growth Volatility: a Nonparametric Approach," Discussion Papers 2003/25, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  19. Luciano Fanti & Luca Gori, 2008. "Neoclassical Economic Growth and Lifetime Welfare in a Simple OLG Model with Unions," Discussion Papers 2008/71, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  20. Meccheri, Nicola, 2009. "A note on noncompetes, bargaining and training by firms," Economics Letters, Elsevier, vol. 102(3), pages 198-200, March. [Downloadable!] (restricted)
    Other versions:
  21. Carlo Brambilla & Giandomenico Piluso, 2008. "Italian investment and merchant banking up to 1914: Hybridising international models and practices," Discussion Papers 2008/7, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  22. Luciano Fanti & Luca Gori, 2007. "Economic Growth and Welfare in a Simple Neoclassical OLG Model with Minimum Wage and Consumption Taxes support," Discussion Papers 2007/68, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  23. Tommaso Luzzati & Alessandro Franco, 2004. "Idrogeno, fonti rinnovabili ed eco-efficienza. Quale approccio alla questione energetica?," Discussion Papers 2004/45, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  24. Maurizio Lisciandra, 2007. "The Role of Reciprocating Behaviour in Contract Choice," Discussion Papers 2008/65, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
Full references

Cited by:
(explanations, 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.)

  1. Luca Gori, 2009. "Endogenous fertility, family policy and multiple equilibria," Discussion Papers 2009/79, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS also indexes books.

This page was last updated on 2009-11-27.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.