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The Unemployment Effects of Minimum Wages

The Unemployment Effects of Minimum Wages Analyses the effect of a minimum wage on unemployment. Using a model with covered and non‐covered sectors, comparative static analysis is performed with respect to the elasticity of demand for labour in the covered sector, the elasticity of the wage in the non‐covered sector with respect to the size of the non‐covered sector labour force, and the size of the minimum wage. It turns out, contrary to the existing literature, that for none of these parameters is the comparative static effect unidirectional. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

The Unemployment Effects of Minimum Wages

International Journal of Manpower , Volume 15 (2/3): 8 – Jan 1, 1994

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References (19)

Publisher
Emerald Publishing
Copyright
Copyright © 1994 MCB UP Ltd. All rights reserved.
ISSN
0143-7720
DOI
10.1108/01437729410059323
Publisher site
See Article on Publisher Site

Abstract

Analyses the effect of a minimum wage on unemployment. Using a model with covered and non‐covered sectors, comparative static analysis is performed with respect to the elasticity of demand for labour in the covered sector, the elasticity of the wage in the non‐covered sector with respect to the size of the non‐covered sector labour force, and the size of the minimum wage. It turns out, contrary to the existing literature, that for none of these parameters is the comparative static effect unidirectional.

Journal

International Journal of ManpowerEmerald Publishing

Published: Jan 1, 1994

Keywords: Economy; Labour market; Minimum wage; Pay; Unemployment; Pay

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