Ahn, Tom; Arcidiacono, Peter; Wessels, Walter - In: Journal of Business & Economic Statistics 29 (2011) 1, pp. 12-23
We develop and estimate a one-shot search model with endogenous firm entry, and therefore zero expected profits, and endogenous labor supply. Positive employment effects from a minimum wage increase can result as the employment level depends upon both the numbers of searching firms and workers....