Arbeitspapier
Getting It Right: Employment Subsidy or Minimum Wage?
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 attractive working conditions reduce it, changes these policy implications. Specifically, a minimum wage policy could, in contrast to an employment subsidy, cause working conditions to deteriorate and welfare to fall. Empirical evidence from the Republic of Trinidad and Tobago shows that a minimum wage may indeed cause working conditions to worsen.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 662
- Classification
-
Wirtschaft
- Subject
-
minimum wage
working conditions
monopsony models
Lohnsubvention
Mindestlohn
Arbeitsbedingungen
Trinidad und Tobago
- Event
-
Geistige Schöpfung
- (who)
-
Strobl, Eric
Walsh, Frank A.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Strobl, Eric
- Walsh, Frank A.
- Institute for the Study of Labor (IZA)
Time of origin
- 2003
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The minimum wage and hours per worker
Minimum wages and compliance: The case of Trinidad and Tobago
The ambiguous effect of minimum wages on workers and total hours
The ambiguous effect of minimum wages on workers and total hours
THE MACROECONOMIC IMPACT OF NATURAL DISASTERS IN DEVELOPING COUNTRIES: EVIDENCE FROM HURRICANE STRIKES IN THE CENTRAL AMERICAN AND CARIBBEAN REGION
Is education used as a signaling device for productivity in developing countries? Evidence from Ghana
Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana
The economic growth impact of hurricanes: evidence from US coastal counties
The impact of typhoons on economic activity in the Philippines: Evidence from nightlight intensity
The role of educational choice in occupational gender segregation: evidence from Trinidad and Tobago