This paper examines the impact of the minimum wage legislation on firms' performance through the abnormal returns of share prices. Abnormal returns are estimated for events throughout the legislation in Hong Kong. Evidences show that the anticipated impact of the minimum wage on firms'...

Our simple model features agents heterogeneous in skill and risk aversion, incomplete financial markets, and redistributive taxation. In equilibrium, agents become entrepreneurs if their skill is sufficiently high or risk aversion sufficiently low. Under heavier taxation, entrepreneurs are more...

In the present paper an empirical analysis will point out that the level of confidence in EU institutions affects positively Stock Market prices. The sample covers many countries of the EU. Data are taken from Eurostat. The elaboration of these panel data is made feasible by means of the Eviews...

David Card and Alan Krueger's Myth and Measurement: The New Economics of the Minimum Wage is perhaps the most cited comprehensive treatment of the economics of the minimum wage. One element of Card and Krueger's (1995) analysis pertains to the effect of anticipated minimum wage increases on...

How does the value of a firm change in response to a minimum wage hike? The evidence we have to date is not well-suited to answer this question, principally because events that have been studied are not completely unknown to the stock market or have uncertainty associated with them. This paper...

Net corporate profits have persisted at historical highs for almost 10 years. Such levels exceed what can be profitably re-invested, as evidenced by aggregate dividend payouts and buybacks nearing 6% of GDP. We argue that at such levels corporate profits operate effectively as a tax on the...