Minimum Wages, Capital Accumulation and Worker's Incomes

Using an intertemporal model of saving and capital accumulation we demonstrate that it is impossible for any binding minimum wage to increase the after-tax incomes of workers if the production function is Cobb-Douglas with constant returns to scale, or if there are no differences in ability among workers.

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Year of publication:	2014
Authors:	Economides, George ; Moutos, Thomas
Institutions:	CESifo
Subject:	minimum wage \| capital accumulation \| heterogeneity \| unemployment

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Extent:	application/pdf
Series:	CESifo Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 4821
Classification:	E21 - Consumption; Saving ; E24 - Employment; Unemployment; Wages ; E64 - Incomes Policy; Price Policy ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies ; J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010779410