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Dealing with monopsony power: Employment subsidies vs. minimum wages

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Download eletrev6.pdf38.79 KB
Author(s)
Strobl, Eric 
Walsh, Frank 
Uri
http://hdl.handle.net/10197/8055
Date Issued
January 2007
Date Available
13T12:48:16Z October 2016
Abstract
We show in a monopsony model that accounting for changes in hours a minimum wage has ambiguous effects on employment and welfare. When all workers have the same preference ordering over leisure and consumption employment subsidies unambiguously improve welfare. Many countries have minimum wages and also tax minimum wage workers.
Type of Material
Journal Article
Publisher
Elsevier
Journal
Economics Letters
Volume
94
Issue
1
Start Page
83
End Page
89
Copyright (Published Version)
2007 Elsevier
Keywords
  • Monopsony

  • Minimum wages

  • Hours worked

  • Productivity

Classification
J42
J48
DOI
10.1016/j.econlet.2006.08.005
Language
English
Status of Item
Peer reviewed
This item is made available under a Creative Commons License
https://creativecommons.org/licenses/by-nc-nd/3.0/ie/
Owning collection
Economics Research Collection
Scopus© citations
4
Acquisition Date
Jun 2, 2023
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1400
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