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Wage Dispersion and the Minimum Wage Spike in a Search Economy With Wage-Posting
Review of Economics and Institutions
View Archive Info| Field | Value | |
| Title |
Wage Dispersion and the Minimum Wage Spike in a Search Economy With Wage-Posting
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| Creator |
Shelkova, Natalya Y; Guilford College
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| Subject |
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search, wage-posting, minimum wage, minimum wage spike, wage dispersion J30, J64, E24 |
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| Description |
Wage distributions in economies with mandated minimum wage exhibit both wage dispersion and wage clustering known as the minimum wage spike. The paper builds a search-theoretic model that reconciles the two phenomena simultaneously under the assumptions of wage-posting, urn-ball matching, rm heterogeneity, and wage-dependent search cost. Numerical simulations demonstrate the potency of the model. A non-degenerate minimum wage spike and wage dispersion are obtained. The model also shows that a higher, non-binding minimum wage can be associated with greater employment (and higher wages), previously found in empirical studies.
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| Publisher |
University of Perugia
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| Contributor |
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| Date |
2016-06-10
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.rei.unipg.it/rei/article/view/195
10.5202/rei.v7i1.195 |
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| Source |
Review of Economics and Institutions; Vol 7, No 1 (2016); 16
2038-1379 2038-1344 |
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| Language |
eng
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| Relation |
http://www.rei.unipg.it/rei/article/view/195/162
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| Rights |
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