Jellal, Mohamed (2012): A theory of compliance with minimum wage legislation.
Download (473kB) | Preview
In this paper, we introduce firm heterogeneity in the context of a model of non-compliance with minimum wage legislation. The introduction of heterogeneity in the ease with which firms can be monitored for non compliance allows us to show that non-compliance will persist in sectors which are relatively difficult to monitor, despite the government implementing non stochastic monitoring. Moreover, we show that the incentive not to comply is an increasing function of the level of the minimum wage and increasing function of the gap between the minimum wage and the competitive wage rate
|Item Type:||MPRA Paper|
|Original Title:||A theory of compliance with minimum wage legislation|
|Keywords:||Minimum wage legislation, Employment , Informal sector in LDCs , Government Policy|
|Subjects:||J - Labor and Demographic Economics > J8 - Labor Standards: National and International
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs
K - Law and Economics > K3 - Other Substantive Areas of Law > K31 - Labor Law
|Depositing User:||Mohamed Jellal|
|Date Deposited:||17. Jun 2012 00:58|
|Last Modified:||12. Feb 2013 14:27|
Alesina, A. And D.Rodrik.(1994), “Distributive Politics and Economic Growth”, The Quarterly Journal of Econmics,Vol 109, N°2 (May 1994), pp.465-490.
Ashenfelter,O.,S.Smith (1979), “Compliance with the minimum Wage Law”, Journal of Political Economy 87:333-350.
Azam,J.P (1992), “ The Agricultural Minimum Wage and Wheat Production in Morocco (1971-1989) ”, Journal of African Economies 1(2), 171-191.
Becker.G (1968) , “Crime and Punishment: An Economic Approach”, Journal of Political Economy , Vol 76, pp. 169-217.
Brown, Charles. 1988. “Minimum Wage Laws: Are They Overrated?”, Journal of Economic Perspectives, vol. 2 (Summer): 133-145
Cahuc,P..and P.Michel (1996), "Minimum wage, unemployment and growth", European Economic Review, vol 47, 1463-82.
Chang, Y.M., and I. Ehrlich (1985). “On the Economics of Compliance with the Minimum Wage Law”, Journal of Political Economy 93(1), 84-91.
Grenier, G. (1982) “On Compliance with the Minimum Wage Law” , Journal of Political Economy 90, 184-187.
Jellal, M (2012) Salaire minimum et pauvreté Maroc , mimeo Makrizi
Jones, S.R (1987), “Minimum Wage Legislation in a Dual Labor Market ”, European Economic Review 31 :1229-1246.
Murphy,K.,Shleifer, A.and R.Vishny (1989), “Income Distribution, Market Size and Industrialization,” Quarterly Journal of Economics 104:537-564.
Persson,T.and G.Tabellini(1992), “Growth, Distribution and Politics ”, European Economic Review, Papers and Proceedings(April) 539-602.
Stigler, G. (1970) “The Optimum Enforcement of Laws” Journal of Political Economy 78(3),526-536.
Tobol, Y. (2005) “Wage Discrimination as an Illegal Behavior ”, Economics Bulletin 10(4), 1-10.
Yaniv, G. (1988) “Enforcement and Monopsonistic Compliance with the Minimum Wage Law” ,Southern Economic Journal 55(2), 505-509.
Yaniv, G. (1994) “Complaining about Noncompliance with the Minimum Wage Law” International Review of Law and Economics 14, 351-62.
Yaniv, G. (2001) “Minimum Wage Noncompliance and the Employment Decision” Journal of Labor Economics 19, 596-603.
Yaniv, G. (2004) “Minimum Wage Noncompliance and the Sub-minimum Wage Rate” Economics Bulletin 10(9), 1-7.