The long-run consequences of minimum wage regulation in a monetary economy

John Z Drabicki, Akira Takayama

Research output: Contribution to journalArticle

Abstract

This paper investigates the long-run implications of minimum wage regulation on the growth process with monetary repercussions. The paper shows, among other results, that if the minimum wage floor (MWF) is sufficiently low, then the qualitative behavior of the dynamic path is similar to the case of full employment in which the steady state is a saddle point, and that if the MWF is sufficiently high, the economy decays all the way toward the origin.

Original languageEnglish (US)
Pages (from-to)387-403
Number of pages17
JournalJournal of Macroeconomics
Volume4
Issue number4
DOIs
Publication statusPublished - 1982

    Fingerprint

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this