On the heterogeneous short-term effects of minimum wages on labor demand

Juan A. Correa, Francisco Parro

Resultado de la investigación: Article

Resumen

A strand of the literature documents no effects or even positive effects of a higher minimum wage on employment. This evidence is frequently linked to the existence of monopsonistic labor markets or search frictions. However, empirical studies show that these findings could be related to a low short-term minimum wage–employment elasticity in a competitive labor market. We show that mixed theoretical employment effects of a minimum wage policy can be predicted in the short term in assignment economies with price-taker agents and no search frictions.

Idioma originalEnglish
PublicaciónInternational Journal of Economic Theory
DOI
EstadoAccepted/In press - 1 ene 2019

Huella dactilar

Search frictions
Minimum wage
Labour demand
Labor market frictions
Assignment
Elasticity
Wage policy
Labour market
Empirical study
Employment effects

ASJC Scopus subject areas

  • Economics and Econometrics

Citar esto

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