The minimum wage from a two-sided perspective
Brown, Alessio J.G. ; Merkl, Christian ; Snower, Dennis J.
Kiel Institute for the World Economy
IFW Kiel - Kiel
2014
9 p.
employment ; minimum wage ; wage incentive
Kiel Working Paper
1906
Wages and wage payment systems
http://www.ifw-members.ifw-kiel.de/
English
Bibliogr.
"This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that sufficiently low minimum wages may do no harm to employment, since their job-offer disincentives are countervailed by their job-acceptance incentives."
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