The ambiguous effect of minimum wages on hours
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.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Kenneth A. Couch & David C. Wittenburg, 2001. "The Response of Hours of Work to Increases in the Minimum Wage," Southern Economic Journal, Southern Economic Association, vol. 68(1), pages 171-177, July.
- Connolly, Sara & Gregory, Mary, 2002.
" The National Minimum Wage and Hours of Work: Implications for Low Paid Women,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 64(0), pages 607-31, Supplemen.
- Sara Connolly & Mary Gregory, 2002. "The National Minimum Wage and Hours of Work: Implications for Low Paid Women," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(s1), pages 607-631, 08.
- Frank Walsh, 2003.
"Comment on 'minimum wages for ronald mcdonald monopsonies: a theory of monopsonistic competition',"
Royal Economic Society, vol. 113(489), pages 718-722, 07.
- Frank Walsh, 2003. "Comment on 'minimum wages for Ronald McDonald monopsonies: a theory of monopsonistic competition'," Open Access publications 10197/8050, School of Economics, University College Dublin.
- Stewart, Mark B. & Swaffield, Joanna K., 2006.
"The other margin : do minimum wages cause working hours adjustments for low-wage workers?,"
The Warwick Economics Research Paper Series (TWERPS)
746, University of Warwick, Department of Economics.
- Mark B. Stewart & Joanna K. Swaffield, 2008. "The Other Margin: Do Minimum Wages Cause Working Hours Adjustments for Low-Wage Workers?," Economica, London School of Economics and Political Science, vol. 75(297), pages 148-167, 02.
- Lawrence F. Katz & Alan B. Krueger, 1992.
"The Effect of the Minimum Wage on the Fast-Food Industry,"
Cornell University, ILR School, vol. 46(1), pages 6-21, October.
- Lawrence F. Katz & Alan B. Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," NBER Working Papers 3997, National Bureau of Economic Research, Inc.
- Katz, L.F. & Krueger, A.B., 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Harvard Institute of Economic Research Working Papers 1584, Harvard - Institute of Economic Research.
- Lawrence F. Katz & Alan B. Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Working Papers 678, Princeton University, Department of Economics, Industrial Relations Section..
- repec:pri:indrel:dsp013x816m62z is not listed on IDEAS
- Pierre Cahuc & Stéphane Carcillo & André Zylberberg, 2014.
Sciences Po publications
info:hdl:2441/1oclgdahv98, Sciences Po.
- Pierre Cahuc & Stéphane Carcillo & André Zylberberg, 2014. "Labor Economics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01076752, HAL.
- James B. Rebitzer & Lowell J. Taylor, 1991.
"The Consequences of Minimum Wage Laws: Some New Theoretical Ideas,"
NBER Working Papers
3877, National Bureau of Economic Research, Inc.
- 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.
- De Fraja, Gianni, 1999. "Minimum Wage Legislation, Productivity and Employment," Economica, London School of Economics and Political Science, vol. 66(264), pages 473-88, November.
- Kinoshita, Tomio, 1987. "Working Hours and Hedonic Wages in the Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1262-77, December.
- repec:fth:prinin:298 is not listed on IDEAS
- Neumark, David & Wascher, William, 2007.
"Minimum Wages and Employment,"
IZA Discussion Papers
2570, Institute for the Study of Labor (IZA).
- V. Bhaskar & Ted To, 1996.
"Minimum Wages for Ronald McDonald Monopsonies: A Theory of Monopsonistic Competition,"
Labor and Demography
9603001, EconWPA, revised 21 May 1996.
- Bhaskar, V & To, Ted, 1999. "Minimum Wages for Ronald McDonald Monopsonies: A Theory of Monopsonistic Competition," Economic Journal, Royal Economic Society, vol. 109(455), pages 190-203, April.
- Strobl, Eric & Walsh, Frank, 2007.
"Dealing with monopsony power: Employment subsidies vs. minimum wages,"
Elsevier, vol. 94(1), pages 83-89, January.
- Eric Strobl & Frank Walsh, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Post-Print hal-00395607, HAL.
- Eric Strobl & Frank Walsh, 2007. "Dealing with monopsony power: Employment subsidies vs. minimum wages," Open Access publications 10197/8055, School of Economics, University College Dublin.
- Thomas R. Michl, 2000. "Can Rescheduling Explain the New Jersey Minimum Wage Studies?," Eastern Economic Journal, Eastern Economic Association, vol. 26(3), pages 265-276, Summer.
- Brown, Charles, 1999. "Minimum wages, employment, and the distribution of income," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 32, pages 2101-2163 Elsevier.
- M. S. Feldstein, 1967. "Specification of the Labour Input in the Aggregate Production Function," Review of Economic Studies, Oxford University Press, vol. 34(4), pages 375-386.
- Daniel S. Hamermesh, 1993. "Labor Demand and the Source of Adjustment Costs," NBER Working Papers 4394, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:18:y:2011:i:2:p:218-228. 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: (Shamier, Wendy)
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.