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Worker heterogeneity and the asymmetric effects of minimum wages | ||
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Autor: Jose Luis Luna Alpizar Anotace"This paper explores the notion that minimum wages affect different lowskilled workers asymmetrically due to productivity differences. In a search model with worker heterogeneity, a rising minimum wage lowers the employment and labor force participation of the least productive workers by pricing them out of the market, while having the opposite effect on other low-skilled workers that remain hirable. CPS data supports these predictions; a rise in the minimum reduces the employment and labor force participation of teenagers with less than high school education, but has the opposite effect on prime-age workers with high school attainment. The calibrated model requires small firm surpluses to match these observations. If firm surplus is small due to high nonmarket activity values, a moderate rise in the minimum improves aggregate welfare even when the worker's bargaining weight is high." In ALPIZAR, Jose Luis Luna. Worker heterogeneity and the asymmetric effects of minimum wages. Prague: CERGE-EI, 2019. 52 stran. Working paper series, 642. ISBN 978-80-7343-449-6. Zdroj anotace: OKCZ - ANOTACE Z WEBU | |