Ozturk, Orgul (2006): Employment Effects of Minimum Wages in Inflexible Labor Markets.
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This paper structurally models and estimates the employment effects of a minimum wage regulation in an inflexible labor market with fixed employment costs. When there are fixed costs associated with employment, minimum-wage regulation not only results in a reduction in employment among low-productivity workers but also shifts the distribution of hours for the available jobs in the market, resulting in a scarcity of part-time jobs. Thus, for sufficiently high employment costs, a minimum wage makes it less likely for "marginal" workers to enter and stay in the labor market. I estimate the model using survey data from Turkey. I find a significant reduction in employment due to the loss of part-time jobs caused by the national minimum-wage policy in this highly inflexible labor market.
|Item Type:||MPRA Paper|
|Original Title:||Employment Effects of Minimum Wages in Inflexible Labor Markets|
|Keywords:||Fixed employment costs, labor market inflexibility, minimum wage, female labor force participation, part-time jobs, hours constraints|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor
|Depositing User:||Orgul D. Ozturk|
|Date Deposited:||13. Jul 2009 23:48|
|Last Modified:||22. Feb 2015 08:05|
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Employment Effects of Minimum Wages in Inflexible Labor Markets. (deposited 31. Mar 2008 18:36)
- Employment Effects of Minimum Wages in Inflexible Labor Markets. (deposited 13. Jul 2009 23:48) [Currently Displayed]