Employment and distribution effects of the minimum wage

Arbeitspapier

Using an efficiency wage model we show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality. Evidence from the US suggests that these theoretical results are empirically relevant. The over-education rate has been increasing and our regression analysis suggests that the decrease in the minimum wage may have led to a deterioration of the employment and relative wage of low-skill workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2010-03

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Labor Contracts ; Monopsony; Segmented Labor Markets
• Subject: minimum wage ; earnings inequality ; monopsony ; efficiency wage ; over-education

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Slonimczyk, Fabian ; Skott, Peter
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/64237
• Last update: 10.03.2025, 11:44 AM CET