Optimal Minimum Wage in the Classic Labor Supply-and-Demand Paradigm

Rajeev  Dehejia; Bjørn N. Jørgensen; Raphael C.  Thomadsen

doi:10.1080/10875540802350153

Optimal Minimum Wage in the Classic Labor Supply-and-Demand Paradigm

Rajeev Dehejia, Bjørn N. Jørgensen, Raphael C. Thomadsen^*

^*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstract

This article demonstrates that minimum wage laws need not induce unemployment even under the classic labor supply-and-demand paradigm. As a result, minimum wage laws can be welfare-enhancing under the basic labor supply and demand model, suggesting the presence of an optimal minimum wage. We discuss conditions under which the optimal minimum wage level is the subsistence wage level. As a consequence, minimum wages should vary across states or countries with the local subsistence levels

Originalsprog	Engelsk
Tidsskrift	Journal of Poverty
Vol/bind	12
Udgave nummer	4
Sider (fra-til)	481-495
Antal sider	15
ISSN	1087-5549
DOI	https://doi.org/10.1080/10875540802350153
Status	Udgivet - 2008
Udgivet eksternt	Ja

Emneord

Minimum wage
Unemployment
Wage regulation

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10.1080/10875540802350153Licens: Ikke-specificeret

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Citationsformater

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