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The minimum wage and hours per worker

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Listed:
  • Eric Strobl
  • Frank Walsh

Abstract

In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.

Suggested Citation

  • Eric Strobl & Frank Walsh, 2010. "The minimum wage and hours per worker," Working Papers 201028, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:201028
    as

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    File URL: http://hdl.handle.net/10197/2661
    File Function: First version, 2010
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    References listed on IDEAS

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    5. Strobl, Eric & Walsh, Frank, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Economics Letters, Elsevier, vol. 94(1), pages 83-89, January.
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    More about this item

    Keywords

    Minimum wages; Hours; Employment; Minimum wage; Hours of labor; Labor supply;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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