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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/20051| Title: | Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies |
| Keywords: | J42 D83 J3 C72 J6 ddc:330 wages productivity job search unemployment imperfect information equilibrium labor market policy matching congestion Arbeitsmarkt Mindestlohn Arbeitsuche Gleichgewichtstheorie Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | It is often argued that a mandatory minimum wage is binding only if the wage density displays a spike at it. In this paper we analyze a model with search frictions and heterogeneous production technologies, in which imposition of a minimum wage affects wages even though, after imposition, the lowest wage in the market exceeds the minimum wage. The model has multiple equilibria as a result of the fact that the reservation wage of the unemployed and the lowest production technology in use affect each other. Imposition of a minimum wage may improve social welfare. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/20051 |
| Other Identifiers: | http://hdl.handle.net/10419/20051 ppn:366031775 |
| Appears in Collections: | EconStor |
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