|
EconStor >
Freie Universität Berlin >
Fachbereich Wirtschaftswissenschaft, Freie Universität Berlin >
Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/43686
|
| | |
| Title: | | Wage and employment effects of non-binding minimum wages  |
| Authors: | | Dittrich, Marcus Knabe, Andreas |
| Issue Date: | | 2010 |
| Series/Report no.: | | School of Business & Economics Discussion Paper: Economics 2010/15 |
| Abstract: | | Common wisdom holds that the introduction of a non-binding minimum wage is irrelevant for actual wages and employment. Empirical and experimental research, however, has shown that the introduction of a minimum wage can raise even those wages that were already above the new minimum wage. In this paper, we analyze how these findings can be explained by theoretical wage bargaining models between unions and firms. While the Nash bargaining solution is unaffected by minimum wages below initially bargained wages, we show that such minimum wages can drive up wages - and be harmful to employment - when bargaining follows the Kalai-Smorodinsky solution. |
| JEL: | | J38 C78 J52 |
| ISBN: | | 978-3-941240-27-8 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/43686
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|