The ambiguous effect of minimum wages on workers and total hours

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Title: The ambiguous effect of minimum wages on workers and total hours
Authors: Strobl, Eric
Walsh, Frank
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Date: Aug-2007
Abstract: We model a standard competitive labour market where firms choose combinations of workers and hours per worker to produce output. If one assumes that the scale of production has no impact on hours per worker, then the change in the number of workers and hours per worker resulting from a minimum wage are inversely related. We also demonstrate that total hours worked at the firm may rise if there are small fixed costs to hiring workers.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP07/14
Copyright (published version): UCD School of Economics 2007
Keywords: Minimum wagesHoursEmployment
Subject LCSH: Hours of labor
Minimum wage
Labor supply
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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