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Erscheinungsjahr: 
2012
Schriftenreihe/Nr.: 
Working Paper No. 2012-05
Verlag: 
University of Massachusetts, Department of Economics, Amherst, MA
Zusammenfassung: 
This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. We show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality. Evidence from the US suggests that these theoretical results are empirically relevant. The over-education rate has been increasing and our regression analysis suggests that the decrease in the minimum wage may have led to a deterioration of the employment and relative wage of low-skill workers.
Schlagwörter: 
minimum wage
earnings inequality
monopsony
efficiency wage
over-education
JEL: 
J31
J41
J42
Dokumentart: 
Working Paper

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