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A Comment on "The consequences of the minimum wage when other wages are bargained over"

Author

Listed:
  • Jürgen Wiemers

    (Institute for Employment Research (IAB))

Abstract

Cahuc, Saint-Martin, and Zylberberg (2001) show numerically that a minimum wage hike can increase both skilled and unskilled employment in a right-to-manage wage bargaining setting. This comment demonstrates that this result crucially depends on an implicitly unrealistic choice for the skilled workers' alternative wage.

Suggested Citation

  • Jürgen Wiemers, 2010. "A Comment on "The consequences of the minimum wage when other wages are bargained over"," Economics Bulletin, AccessEcon, vol. 30(1), pages 374-382.
    • Handle: RePEc:ebl:ecbull:eb-09-00705
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I1-P32.pdf
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    References listed on IDEAS

    as
    1. Juan Dolado & Francis Kramarz & Steven Machin & Alan Manning & David Margolis & Coen Teulings, 1996. "The Economic Impact of Minimum Wages in Europe," Post-Print halshs-00353896, HAL.
    2. Alan Manning, 1995. "How Do We Know That Real Wages Are Too High?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1111-1125.
    3. Rebitzer, James B. & Taylor, Lowell J., 1995. "The consequences of minimum wage laws Some new theoretical ideas," Journal of Public Economics, Elsevier, vol. 56(2), pages 245-255, February.
    4. Henri R. Sneessens & Fatemeh Shadman-Mehta, 1995. "Real Wages, Skill Mismatch and Unemployment Persistence (FRANCE, 1962-1989)," Annals of Economics and Statistics, GENES, issue 37-38, pages 255-292.
    5. Metcalf, David, 2007. "Why has the British national minimum wage had little or no impact on employment?," LSE Research Online Documents on Economics 19742, London School of Economics and Political Science, LSE Library.
    6. David Metcalf, 2007. "Why Has the British National Minimum Wage Had Little or No Impact on Employment?," CEP Discussion Papers dp0781, Centre for Economic Performance, LSE.
    7. Christopher J. Flinn, 2006. "Minimum Wage Effects on Labor Market Outcomes under Search, Matching, and Endogenous Contact Rates," Econometrica, Econometric Society, vol. 74(4), pages 1013-1062, July.
    8. repec:adr:anecst:y:1995:i:37-38:p:13 is not listed on IDEAS
    9. Cahuc, P. & Saint-Martin, A. & Zylberberg, A., 2001. "The consequences of the minimum wage when other wages are bargained over," European Economic Review, Elsevier, vol. 45(2), pages 337-352, February.
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    More about this item

    Keywords

    Minimum wage; Wage bargaining; Employment;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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