Strobl, Eric; Walsh, Frank - Institute for the Study of Labor (IZA) - 2002
In monopsony models of the labour market either a minimum wage or an employment subsidy financed by a lump sum tax on … profits can achieve the efficient level of employment and output. Incorporating working conditions into a monopsony model … implications. Specifically, a minimum wage policy could, in contrast to an employment subsidy, cause working conditions to …