Minimum wage regulation and economic growth

John Z. Drabicki, Akira Takayama

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

This paper investigates the long-run growth implications of minimum wage regulation (MWR) enforced nationally using a familiar aggregate growth model. The paper shows that MWR, if it is effective, always lowers the rate of growth, and that the minimum wage floor, if it is sufficiently high, causes the economy to decay all the way toward the origin. The effects of a "wage-mark-up" policy, a variation of MWR, are also examined.

Original languageEnglish (US)
Pages (from-to)231-240
Number of pages10
JournalJournal of Economics and Business
Volume34
Issue number3
DOIs
StatePublished - 1982

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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