Ragacs, Christian (2002) Minimum wages, human capital, employment and growth. Department of Economics Working Paper Series, 81. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.
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Abstract
This paper deals with the effects of minimum wages on human capital accumulation, and steady state employment and growth. The minimum wage is introduced in a model of endogenous growth driven by human capital accumulation. Unemployed agents maximize utility given the information that they are unemployed facing changed budget constraints. This situation is implemented in a "non-market-clearing equilibrium" framework. We show that the steady state rate of growth is not affected by the minimum wage and that in the steady state the system yields full employment. These effects are generated by intertemporal adjustments of the employed households who re-act to the relatively higher minimum wage which increases skills accumulation. (author's abstract)
| Item Type: | Paper |
|---|---|
| Additional Information: | a strongly revised version of this paper appeared in: Ragacs, Christian ( 2004), Minimum Wages and Employment - Static and Dynamic Non-Market Clearing Equilibrium Models, Palgrave/Macmillan, London |
| Keywords: | minimum wages / employment / non-market clearing general equilibrium / endogenous growth |
| Classification Codes: | JEL E24, J5, O15, J41 |
| Divisions: | Departments > Volkswirtschaft |
| Depositing User: | Repository Administrator |
| Date Deposited: | 02 Sep 2002 13:51 |
| Last Modified: | 08 Jun 2011 13:27 |
| WU Online Catalog: | http://onlinekatalog.wu.ac.at/F?func=find-b&reques... |
| URI: | http://epub.wu.ac.at/id/eprint/224 |
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