全球智库信息集成服务系统(G2TT): Minimum Wage in a Multi-Tier Search and Wage-Posting Model with Cross-Market Substitutions

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w26378
来源ID	Working Paper 26378
	Minimum Wage in a Multi-Tier Search and Wage-Posting Model with Cross-Market Substitutions
	C. Y. Kelvin Yuen; Ping Wang
发表日期	2019-10-21
出版年	2019
语种	英语
摘要	While minimum wage policy is widely adopted in the real world, can it effectively raise the average wage of lower paid jobs without having large detrimental consequences for employment? The empirical literature fails to establish robust findings. We develop a general-equilibrium search and wage-posting framework with heterogeneous workers and tasks matching in multi-tier labor markets: abstract, routine high-skilled, routine middle-skilled, manual middle-skilled and manual low-skilled. We incorporate rich cross-market spillovers and compositional effects from individual responses to market thickness. As a result of minimum wage hikes, we show that (i) the unemployment rate at the minimum wage binding market is higher, while all other markets enjoy a lower unemployment rate; (ii) employment in the manual low-skilled jobs is lower, whereas employment in the routine high-skilled and manual middle-skilled markets is higher due to cross-market substitutions; and, (iii) employment in other markets has ambiguous responses due to conflicting effects on potential worker entry and unemployment. By calibrating the model to fit the U.S. data, we evaluate the impacts of the federal minimum wage hike (2007-2009) and the on-going minimum wage increase in Seattle (2017-2021). We find that the minimum wage effects on employment on the binding markets depend crucially on the magnitudes of spillover and compositional effects and that the employment effects may be weak in a nonbinding market. Moreover, our results suggest that, while both minimum wage hikes reduce aggregate output, they only generate small effects on submarket average and overall average wages.
主题	Microeconomics ; Economics of Information ; Macroeconomics ; Consumption and Investment ; Fiscal Policy ; Labor Economics ; Unemployment and Immigration
URL	https://www.nber.org/papers/w26378
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/584052
推荐引用方式 GB/T 7714	C. Y. Kelvin Yuen,Ping Wang. Minimum Wage in a Multi-Tier Search and Wage-Posting Model with Cross-Market Substitutions. 2019.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w26378.pdf（344KB）	智库出版物		限制开放	CC BY-NC-SA	浏览