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Noncompliance and the Effects of the Minimum Wage on Hours and Welfare in Competitive Labor Markets
Danziger, Leif - 2021
This paper shows that increases in the minimum wage rate can have ambiguous effects on the working hours and welfare of employed workers in competitive labor markets. The reason is that employers may not comply with the minimum wage legislation and instead pay a lower subminimum wage rate. If...
Persistent link: https://www.econbiz.de/10013316315
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Endogenous Monopsony and the Perverse Effect of the Minimum Wage in Small Firms
Danziger, Leif - 2021
The minimum wage rate has been introduced in many countries as a means of alleviating the poverty of the working poor. This paper shows, however, that an imperfectly enforced minimum wage rate causes small firms to face an upward-sloping labor supply schedule. Since this turns these firms into...
Persistent link: https://www.econbiz.de/10013316334
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Marginal Employment Subsidization : A New Concept and a Reappraisal
Knabe, Andreas; Schöb, Ronnie; Weimann, Joachim - 2021
In this paper, we attempt to renew the interest in marginal employment subsidies. Such subsidies are paid only for a firm's additional employment exceeding some reference level and create larger employment stimuli at lower fiscal costs than general wage subsidies for all workers. If the hiring...
Persistent link: https://www.econbiz.de/10013317599
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Wage and Employment Effects of Non-Binding Minimum Wages
Dittrich, Marcus - 2010
Common wisdom holds that the introduction of a non-binding minimum wage is irrelevant for actual wages and employment. Empirical and experimental research, however, has shown that the introduction of a minimum wage can raise even those wages that were already above the new minimum wage. In this...
Persistent link: https://www.econbiz.de/10013139416
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Spillover Effects of Minimum Wages : Theory and Experimental Evidence
Dittrich, Marcus - 2011
We study the spillover effects of minimum wages in a laboratory experiment. In a bilateral firm-worker bargaining setting, we find that the introduction of a minimum wage exerts upward pressure on wages even if the minimum wage is too low to be a binding restriction. Furthermore, raising the...
Persistent link: https://www.econbiz.de/10013120274
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Is a Minimum Wage an Appropriate Instrument for Redistribution?
Gerritsen, Aart - 2014
minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …
Persistent link: https://www.econbiz.de/10013059059
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The Price and Employment Response of Firms to the Introduction of Minimum Wages
Link, Sebastian - 2021
This paper studies the price and employment response of firms to the introduction of a nation-wide minimum wage in Germany. In line with previous studies, the estimated employment effect is only modestly negative and statistically insignificant. In contrast, affected firms increased prices much...
Persistent link: https://www.econbiz.de/10013315367
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Is a Minimum Wage an Appropriate Instrument for Redistribution?
Gerritsen, Aart; Jacobs, Bas - CESifo - 2014
minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …
Persistent link: https://www.econbiz.de/10010736741
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Two-Tier Labor Markets in the Great Recession : France vs. Spain
Bentolila, Samuel; Cahuc, Pierre; Dolado, Juan Jose; Le … - 2021
This paper analyzes the strikingly different response of unemployment to the Great Recession in France and Spain. Their … labor market institutions are similar and their unemployment rates just before the crisis were both around 8%. Yet, in … France, unemployment rate has increased by 2 percentage points, whereas in Spain it has shot up to 19% by the end of 2009. We …
Persistent link: https://www.econbiz.de/10013316123
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Subsidizing Extra Jobs : Promoting Employment by Taming the Unions
Knabe, Andreas; Schöb, Ronnie - 2021
We study the subsidization of extra jobs in a general equilibrium framework. While the previous literature focuses on symmetric marginal employment subsidies where firms are rewarded when they increase employment but punished when they reduce their workforce, we consider an asymmetric scheme...
Persistent link: https://www.econbiz.de/10013316797