The Minimum Wage and Hours per Worker

In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.

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Year of publication:	2010-10-01
Authors:	Strobl, Eric ; Walsh, Frank
Institutions:	School of Economics, University College Dublin
Subject:	Minimum wages \| hours \| employment

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 201028 39 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008673592