Minimum wage laws that reduce labor costs.: An article from: Atlantic Economic Journal Review
This digital document is an article from Atlantic Economic Journal, published by Atlantic Economic Society on June 1, 1995. The length of the article is 512 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: A common belief is that minimum wages raise labor costs. However, efficiency wage models contradict this belief when analyzed from the perspective of reducing turnover. When a minimum wage law specifies only a small increase in wages over that chosen by a profit-maximizing firm, increased efficiency does not directly affect effective labor costs. However, this also raises unemployment, thereby reducing turnover and, thus, effective labor costs. Therefore, contrary to common expectations, a minimum wage law does not disadvantage firms while raising the standard of living.
Citation Details
Title: Minimum wage laws that reduce labor costs.
Author: Thomas J. Carter
Publication:Atlantic Economic Journal (Refereed)
Date: June 1, 1995
Publisher: Atlantic Economic Society
Volume: v23 Issue: n2 Page: p154(1)
Distributed by Thomson Gale Read more...
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