A Theory of Efficiency Wage with Multiple Unemployment Equilibria : How a Higher Minimum Wage Law Can Curb Unemployment

This paper uses efficiency wage theory and the existence of community-based sharing to hypothesize that labor markets in developing countries have multiple equilibria - the same economy can be stuck at different levels of unemployment with different levels of wages. The model is meant for developing economies where wage-productivity links are discernible and income-sharing among the poor is prevalent...

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Year of publication:	2008-03-01
Authors:	Basu, Kaushik ; Felkey, Amanda J.
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Effizienzlohn \| efficiency wage \| Arbeitslosigkeit \| unemployment \| Niedriglohn

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Extent:	270336 bytes 38 p. application/pdf
Series:	Universität Bonn - Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA) - Discussion Papers Discussion Paper ; 3381 (2008)
Type of publication:	Book / Working Paper
Language:	English
Classification:	D40 - Market Structure and Pricing. General ; J60 - Mobility, Unemployment, and Vacancies. General ; O12 - Microeconomic Analyses of Economic Development ; Pay salaries and social benefits ; Individual Working Papers, Preprints ; Southern Africa. General Resources
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005860481