Minimum wage regulation and economic growth

John Z Drabicki, Akira Takayama

Research output: Contribution to journalArticle

2 Citations (Scopus)

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

Fingerprint

Economic growth
Minimum wage
Wages
Markup
Decay
Long-run growth
Growth model

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Minimum wage regulation and economic growth. / Drabicki, John Z; Takayama, Akira.

In: Journal of Economics and Business, Vol. 34, No. 3, 1982, p. 231-240.

Research output: Contribution to journalArticle

Drabicki, John Z ; Takayama, Akira. / Minimum wage regulation and economic growth. In: Journal of Economics and Business. 1982 ; Vol. 34, No. 3. pp. 231-240.
@article{99a18f86c544493e85bf78317076ac84,
title = "Minimum wage regulation and economic growth",
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.",
author = "Drabicki, {John Z} and Akira Takayama",
year = "1982",
doi = "10.1016/0148-6195(82)90005-4",
language = "English (US)",
volume = "34",
pages = "231--240",
journal = "Journal of Economics and Business",
issn = "0012-9933",
publisher = "Elsevier Inc.",
number = "3",

}

TY - JOUR

T1 - Minimum wage regulation and economic growth

AU - Drabicki, John Z

AU - Takayama, Akira

PY - 1982

Y1 - 1982

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=49049130275&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=49049130275&partnerID=8YFLogxK

U2 - 10.1016/0148-6195(82)90005-4

DO - 10.1016/0148-6195(82)90005-4

M3 - Article

AN - SCOPUS:49049130275

VL - 34

SP - 231

EP - 240

JO - Journal of Economics and Business

JF - Journal of Economics and Business

SN - 0012-9933

IS - 3

ER -