A politico-economic analysis of minimum wages and wage subsidies

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 110
Issue: 3
Pages: 171-173

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

This paper constructs a political economy model in which minimum wages are determined according to majority voting. Using the minimum wage scheme as the status quo, we show that the replacement of minimum wages by wage subsidies is not likely to receive political support unless it is supplemented by increased taxation of profits (after-tax profits are also likely to increase).

Technical Details

RePEc Handle
repec:eee:ecolet:v:110:y:2011:i:3:p:171-173
Journal Field
General
Author Count
2
Added to Database
2026-01-24