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We quantify the effect of a minimum wage on compression throughout the earnings distribution. Using the case of Brazil, which experienced a large decrease in earnings inequality while its real minimum wage increased from 1996-2012, we document that the inequality decrease was bottom-driven yet...
Persistent link: https://www.econbiz.de/10012960361
Unemployment Benefits II, do not benefit from a minimum wage at all. Comparing the effects of a minimum wage with different types …
Persistent link: https://www.econbiz.de/10012769311
Using an intertemporal model of saving and capital accumulation with two types of agents (workers and capitalists) we demonstrate that it is impossible for any binding minimum wage to increase the after-tax incomes of workers if the production function is Cobb-Douglas with constant returns to...
Persistent link: https://www.econbiz.de/10012988396
The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age-old conventional wisdom on its head. This paper demonstrates that this apparently paradoxical result is perfectly plausible in a competitive general equilibrium production...
Persistent link: https://www.econbiz.de/10012835193
taxation. In addition, the appearance of equilibrium unemployment also provides an incentive for the government to directly tax …
Persistent link: https://www.econbiz.de/10012768264
This article focuses on the role of labour market institutions in explaining different labour market developments in … early 2000's both in quot;oldquot; and quot;newquot; EU member states. We estimate effects of labour market institutions on … various performance indicators (unemployment, long-term unemployment, employment, activity rate). Our results confirm that …
Persistent link: https://www.econbiz.de/10012769662
unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labour market segment. Cross …
Persistent link: https://www.econbiz.de/10012851339
I review theories and evidence on labor market policies and institutions in an international context. These include … collective bargaining, minimum wages, employment protection laws, unemployment insurance (UI), mandated parental leave, and … entrants (disproportionately women, youth and immigrants) and the less skilled to temporary jobs or unemployment …
Persistent link: https://www.econbiz.de/10013139655
lack of compensating differentials for unemployment risk can arise in equilibrium when all workers are identical and firms … differ only in job security (i.e. the probability that the worker is not sent into unemployment). In a setting where workers … risky tail of the distribution of firm-level unemployment risk. Meanwhile, unemployment becomes persistent for low-wage and …
Persistent link: https://www.econbiz.de/10013060971
. This model yields a simple relationship between (i) the unemployment rate, (ii) the value of non-market time, and (iii) the … and allow for measurement error. The estimated wage dispersion and mismatch for the US is consistent with an unemployment …
Persistent link: https://www.econbiz.de/10013316070