The minimum wage from a two-sided perspective

Merkl C, Snower D, Brown AJG (2014)


Publication Language: English

Publication Status: Published

Publication Type: Journal article

Publication year: 2014

Journal

Publisher: Elsevier

Book Volume: 124

Pages Range: 389-391

Journal Issue: 3

DOI: 10.1016/j.econlet.2014.06.020

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.

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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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