Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We examine how the long‐run growth performance of an economy is affected by a labor market distortion. In our model, growth occurs through skill formation, and skills are generated through schooling and training of unskilled workers. We analyze how a minimum wage legislation affects long‐run growth. In general, the effects are ambiguous. The reason is that while a minimum wage discourages training, it also encourages schooling. The net effect then depends on whether training or schooling dominates the long‐run increases in labor productivity. JEL classification: I20, J31, O40