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Economic Growth and Welfare in a Neoclassical Overlapping Generations Growth Model with Minimum Wages and Consumption Taxes.
- Source :
- LABOUR: Review of Labour Economics & Industrial Relations; Sep2010, Vol. 24 Issue 3, p238-262, 25p, 1 Graph
- Publication Year :
- 2010
-
Abstract
- We examine the effects of minimum wages on both the long-run per worker GDP and welfare in the textbook Diamond style overlapping generations economy. In addition, we assume the existence of unemployment benefits financed at a balanced budget with consumption taxes. Under suitable conditions, it is shown that a regulated-wage economy with unemployment performs better than a competitive-wage economy with full employment in the long run. Moreover, a welfare-maximizing minimum wage exists. Our findings may have interesting policy implications. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 11217081
- Volume :
- 24
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- LABOUR: Review of Labour Economics & Industrial Relations
- Publication Type :
- Academic Journal
- Accession number :
- 52927986
- Full Text :
- https://doi.org/10.1111/j.1467-9914.2010.00486.x