Chu, Angus C ORCID: 0000-0002-7196-1277, Kou, Zonglai and Wang, Xilin
(2020)
Dynamic effects of minimum wage on growth and innovation in a Schumpeterian economy.
Economics Letters, 188.
p. 108943.
Text
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Abstract
We explore the dynamic effects of minimum wage in a Schumpeterian model with endogenous market structure and obtain the following results. First, raising the minimum wage decreases the employment of low-skill workers and increases the unemployment rate. Second, it decreases the level of output. Third, it decreases the transitional growth rate of output but does not affect the steady-state growth rate. Our quantitative analysis shows that the magnitude of the negative effects of minimum wage is sharply increasing in low-skill labor intensity in production and that employed low-skill workers gain initially but might suffer from slower growth in future wages.
Item Type: | Article |
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Uncontrolled Keywords: | 8 Decent Work and Economic Growth |
Depositing User: | Symplectic Admin |
Date Deposited: | 04 Feb 2020 09:31 |
Last Modified: | 17 Mar 2024 07:18 |
DOI: | 10.1016/j.econlet.2020.108943 |
Related URLs: | |
URI: | https://livrepository.liverpool.ac.uk/id/eprint/3073292 |