Arbeitspapier
A Minimum Wage May Increase Exports and Firm Size Even with a Competitive Labor Market
This paper explores how a minimum wage affects a firm's behavior with a competitive labor market and an uncertain export cost. The model provides several novel insights which are consistent with recent empirical evidence. Thus, a minimum wage increases an exporter's foreign-market size and may cause a non-exporter to start exporting. The foreign-market size may increase so much that, although the home-market size decreases, the overall firm size increases.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 16846
- Classification
-
Wirtschaft
Wages, Compensation, and Labor Costs: General
- Subject
-
exports
minimum wage
firm size
- Event
-
Geistige Schöpfung
- (who)
-
Danziger, Eliav
Danziger, Leif
- Event
-
Veröffentlichung
- (who)
-
Institute of Labor Economics (IZA)
- (where)
-
Bonn
- (when)
-
2024
- Last update
-
10.03.2025, 11:43 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
- Danziger, Eliav
- Danziger, Leif
- Institute of Labor Economics (IZA)
Time of origin
- 2024
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