Minimum wage regulation and economic growth

John Z. Drabicki; Akira Takayama

doi:10.1016/0148-6195(82)90005-4

Minimum wage regulation and economic growth

John Z. Drabicki, Akira Takayama

Economics

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

This paper investigates the long-run growth implications of minimum wage regulation (MWR) enforced nationally using a familiar aggregate growth model. The paper shows that MWR, if it is effective, always lowers the rate of growth, and that the minimum wage floor, if it is sufficiently high, causes the economy to decay all the way toward the origin. The effects of a "wage-mark-up" policy, a variation of MWR, are also examined.

Original language	English (US)
Pages (from-to)	231-240
Number of pages	10
Journal	Journal of Economics and Business
Volume	34
Issue number	3
DOIs	https://doi.org/10.1016/0148-6195(82)90005-4
State	Published - 1982

ASJC Scopus subject areas

General Business, Management and Accounting
Economics and Econometrics

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10.1016/0148-6195(82)90005-4

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Minimum wage regulation and economic growth

Abstract

ASJC Scopus subject areas

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