Chu, Angus C.; Cozzi, Guido; Fan, Haichao; Furukawa, Yuichi - 2021
This study explores the effects of minimum wage on automation and innovation in a Schumpeterian growth model. We find … that raising the minimum wage decreases low-skilled workers' employment and has an ambiguous impact on innovation and … innovation. We also provide a quantitative analysis by simulating the effects of minimum wage on the macroeconomy. Finally, we …