Journal article


The minimum wage from a two-sided perspective


Publication Details
Author(s): Merkl C, Snower D, Brown AJG
Publisher: Elsevier
Publication year: 2014
Volume: 124
Journal issue: 3
Pages range: 389-391
ISSN: 0165-1765
Language: English

Abstract

This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that sufficiently low minimum wages may do no harm to employment, since their job-offer disincentives are countervailed by their job-acceptance incentives.



Focus Area of Individual Faculties


How to cite
APA: Merkl, C., Snower, D., & Brown, A.J.G. (2014). The minimum wage from a two-sided perspective. Economics letters, 124(3), 389-391. https://dx.doi.org/10.1016/j.econlet.2014.06.020

MLA: Merkl, Christian, Dennis Snower, and Alessio J. G. Brown. "The minimum wage from a two-sided perspective." Economics letters 124.3 (2014): 389-391.

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