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The minimum wage and hours per worker
Author(s)
Date Issued
2010-10
Date Available
2010-12-14T17:11:53Z
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.
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.
Sponsorship
Not applicable
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP 10 28
Subjects
Classification
J22
J38
Subject – LCSH
Minimum wage
Hours of labor
Labor supply
Web versions
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
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wp10_28.pdf
Size
228.54 KB
Format
Adobe PDF
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