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An Efficiency Enhancing Minimum Wage

Author

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  • Gokcekus, Omer
  • Tower, Edward

Abstract

We consider an economy (e.g. Chile 1973-83 or modern Turkey) with a minimum wage sector and a free sector, and a tax on labor earnings. We ask can a minimum wage hike raise employment and economic efficiency?

Suggested Citation

  • Gokcekus, Omer & Tower, Edward, 1996. "An Efficiency Enhancing Minimum Wage," Working Papers 96-19, Duke University, Department of Economics.
    • Handle: RePEc:duk:dukeec:96-19
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    Cited by:

    1. is not listed on IDEAS
    2. Todd J. Barry, 2020. "The push for a U.S. living wage: Modeling for inflation, unemployment, both, or neither," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 68-105,106-.
    3. Luciano Fanti & Luca Gori, 2007. "Fertility, income and welfare in an OLG model with regulated wages," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(4), pages 405-427, December.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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