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The ambiguous effect of minimum wages on hours
Author(s)
Date Issued
2011-04
Date Available
2016-10-13T12:31:00Z
Abstract
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.
Type of Material
Journal Article
Publisher
Elsevier
Journal
Labour Economics
Volume
18
Issue
2
Start Page
218
End Page
228
Copyright (Published Version)
2010 Elsevier
Classification
J22
J38
Language
English
Status of Item
Peer reviewed
This item is made available under a Creative Commons License
File(s)
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Name
laboureconomicsrev13.pdf
Size
219.44 KB
Format
Adobe PDF
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8e906cd09b3f001199bf47280e3ea889
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