We analyze the interaction among important institutional variables in the labor market (firing costs, minimum wages and …

important effects. First, they promote employment of unskilled workers (who tend to be the ones who earn low wages). Second, by …

The paper analyzes the influence of minimum wages on firms' incentive to train their employees. We show that this … influence rests on two countervailing effects: minimum wages (i) augment wage compression and thereby raise firms' incentives to … minimum wages give rise to skills inequality: a rise in the minimum wage leads to less training for low-ability workers and …