Minimum wage, on-the-job search and employment : On the sectoral and aggregate equilibrium effect of the mandatory minimum wage
Frédéric Gavrel
- Fonction : Auteur
- PersonId : 952912
Isabelle Lebon
- Fonction : Auteur
- PersonId : 173322
- IdHAL : isabelle-lebon
- ORCID : 0000-0003-4516-6736
- IdRef : 07907071X
Résumé
We study the impact of a minimum wage in a segmented labor market in which workers are at different stages of their careers. At the end of a learning-by-doing period, workers paid the minimum wage quit "bad jobs" for better-paying "good jobs", following an on-the-job search process with endogenous search intensity. A rise in the minimum wage reduces "bad jobs" creation and prompts workers to keep their "bad jobs" by reducing on-the-job search intensity. The ambiguous impact on unqualified employment replicates and explains the findings of several empirical studies. However, a minimum wage rise reduces overall employment and output. Download Info
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Minimum wage, on-the-job search and employment : On the sectoral and aggregate equilibrium effect of the mandatory minimum wage
|
Résumé |
en
We study the impact of a minimum wage in a segmented labor market in which workers are at different stages of their careers. At the end of a learning-by-doing period, workers paid the minimum wage quit "bad jobs" for better-paying "good jobs", following an on-the-job search process with endogenous search intensity. A rise in the minimum wage reduces "bad jobs" creation and prompts workers to keep their "bad jobs" by reducing on-the-job search intensity. The ambiguous impact on unqualified employment replicates and explains the findings of several empirical studies. However, a minimum wage rise reduces overall employment and output. Download Info
|
Auteur(s) |
Frédéric Gavrel
1, 2
, Isabelle Lebon
1, 2
, Thérèse Rebière
3
1
CREM -
Centre de recherche en économie et management
( 894 )
- 7 place Hoche, BP 86514
35065 RENNES CEDEX
- France
2
TEPP -
Travail, Emploi et Politiques Publiques
( 188024 )
- Université Paris-Est Marne-la-Vallée
5 boulevard Descartes - Champs sur Marne
Bâtiment Camus
77454 Marne-la-Vallée Cedex 2
- France
3
LIRSA-CRC -
LIRSA. Centre de recherche en comptabilité
( 148320 )
- France
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Internationale
|
Date de publication |
2012
|
Volume |
29
|
Page/Identifiant |
691-699
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Mots-clés |
en
Minimum wage, On-the-job search, Search intensity, Unqualified employment
|
DOI | 10.1016/j.econmod.2012.01.005 |
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