Minimum wages for Ronald McDonald monopsonies : a theory of monopsonistic competition by V Bhaskar and Ted To - a comment
|Title:||Minimum wages for Ronald McDonald monopsonies : a theory of monopsonistic competition by V Bhaskar and Ted To - a comment||Authors:||Walsh, Frank||Permanent link:||http://hdl.handle.net/10197/930||Date:||Sep-2001||Abstract:||Bhaskar and To (1999) develop a model of monopsonistic competition and solve explicitly for equilibrium. While a minimum wage set just above the unconstrained optimum leads firms to increase employment it also causes firm exit as profits fall. In this note I show that the employment and welfare effects of the minimum wage which Bhaskar and To had thought to be ambiguous when firm exit was accounted for are in fact unambiguously positive.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Copyright (published version):||UCD School of Economics 2001||Keywords:||Monopsony;Minimum wage;Employment||Subject LCSH:||Monopsonies
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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