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A National Minimum Wage: Stimulus to Economic Efficiency?

Author

Listed:
  • Edwards, P.
  • Gilman, M.

Abstract

Debate on the proposed national minimum wage (NMW) has been dominated by its possible effects on employment. Yet these effects are far from automatic for they depend on the reactiond of firms. Two issues may be highlighted. First, estimates of employment effects turn on assumptions as to how much firms' wage bills would rise which in turn depend on estimating the impact of the NMW on pay structures, in particular differentials. Second, there is the possibility that an NMW would have compensating benefits by increasing efficiency.

Suggested Citation

  • Edwards, P. & Gilman, M., 1998. "A National Minimum Wage: Stimulus to Economic Efficiency?," Papers 59, Warwick - School of Industrial & Business.
  • Handle: RePEc:fth:warwin:59
    as

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    More about this item

    Keywords

    MINIMUM WAGE ; EMPLOYMENT;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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