How Do We Know That Real Wages Are Too High?

S-Tier
Journal: Quarterly Journal of Economics
Year: 1995
Volume: 110
Issue: 4
Pages: 1111-1125

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is a common belief that the existence of involuntary unemployment implies that wages are too high and that wage moderation should be encouraged as a way to keep unemployment down. This paper argues for a reconsideration of this view by showing that it is possible for a binding minimum wage to reduce unemployment or increase employment even if there is involuntary unemployment.

Technical Details

RePEc Handle
repec:oup:qjecon:v:110:y:1995:i:4:p:1111-1125.
Journal Field
General
Author Count
1
Added to Database
2026-01-25