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 where higher wages raise firm labour supply, but less...

On April the 6th of 1998 the government of the Republic of Trinidad and Tobago introduced a National Minimum Wage for the first time. Using the Trinidad and Tobago labour force survey we show that potential costs, if there had been full compliance, could have been substantial. An examination of...

Using a standard production function the equilibrium hours per worker wage locus is shown to be u-shaped in a competitive labour market. A minimum wage may thus either increase or decrease hours per worker and, by extension, the number of workers. We provide supporting evidence for this using...