Bárány, Zsófia L. - Centre for Economic Performance, LSE - 2011
decreasing minimum wage on inequality, I build a dynamic general equilibrium model, based on a two-sector growth model where the … minimum wage leads to an expansion of low-skilled employment, which increases the incentives to acquire skills, thus changing … flow into R&D, thereby decreasing the skill-bias of technology. The reduction in the minimum wage has spill-over effects on …