Monopsony, Minimum Wages and Migration
We show in a monopsony model that in response to a small increase in migration employment will increase in both low productivity non-compliant firms who pay less than and in high productivity firms who pay more than the minimum wage, but will increase by proportionately more in minimum wage firms who are constrained by the labour supply curve. Using data from Thailand we provide evidence that increases in inward net migration are indeed associated with a proportionately greater increase in employment at than below the minimum wage.
|Date of creation:||06 Jan 2014|
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- Frank Walsh, 2003. "Comment on 'minimum wages for ronald mcdonald monopsonies: a theory of monopsonistic competition'," Economic Journal, Royal Economic Society, vol. 113(489), pages 718-722, 07.
- Hirsch, Boris & Jahn, Elke J., 2012.
"Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data,"
79, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Jahn, Elke & Hirsch, Boris, 2012. "Is there monopsonistic discrimination against immigrants? First evidence from linked employer employee data," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65417, Verein für Socialpolitik / German Economic Association.
- Hirsch, Boris & Jahn, Elke J., 2012. "Is There Monopsonistic Discrimination against Immigrants? First Evidence from Linked Employer-Employee Data," IZA Discussion Papers 6472, Institute for the Study of Labor (IZA).
- Strobl, Eric & Walsh, Frank, 2011. "The ambiguous effect of minimum wages on hours," Labour Economics, Elsevier, vol. 18(2), pages 218-228, April.
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