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


  • Jürgen Wiemers

    () (Institute for Employment Research (IAB))


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

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    References listed on IDEAS

    1. repec:adr:anecst:y:1995:i:37-38:p:13 is not listed on IDEAS
    2. 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.
    3. Alan Manning, 1995. "How Do We Know That Real Wages Are Too High?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1111-1125.
    4. 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.
    5. SNEESSENS, Henri R. & SHADMAN-MEHTA, Fatemeh, 1994. "Real Wages, Skill Mismatch and Unemployment Persistence," CORE Discussion Papers 1994050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    More about this item


    Minimum wage; Wage bargaining; Employment;

    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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