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Wage Dispersion and the Minimum Wage Spike in a Search Economy With Wage-Posting


 
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1. Title Title of document Wage Dispersion and the Minimum Wage Spike in a Search Economy With Wage-Posting
 
2. Creator Author's name, affiliation, country Natalya Y Shelkova; Guilford College; United States
 
3. Subject Discipline(s)
 
3. Subject Keyword(s) search, wage-posting, minimum wage, minimum wage spike, wage dispersion
 
3. Subject Subject classification J30, J64, E24
 
4. Description Abstract Wage distributions in economies with mandated minimum wage exhibit both wage dispersion and wage clustering known as the minimum wage spike. The paper builds a search-theoretic model that reconciles the two phenomena simultaneously under the assumptions of wage-posting, urn-ball matching, rm heterogeneity, and wage-dependent search cost. Numerical simulations demonstrate the potency of the model. A non-degenerate minimum wage spike and wage dispersion are obtained. The model also shows that a higher, non-binding minimum wage can be associated with greater employment (and higher wages), previously found in empirical studies.
 
5. Publisher Organizing agency, location University of Perugia
 
6. Contributor Sponsor(s)
 
7. Date (YYYY-MM-DD) 2016-06-10
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type
 
9. Format File format PDF
 
10. Identifier Uniform Resource Identifier http://www.rei.unipg.it/rei/article/view/195
 
10. Identifier Digital Object Identifier http://dx.doi.org/10.5202/rei.v7i1.195
 
11. Source Title; vol., no. (year) Review of Economics and Institutions; Vol 7, No 1 (2016)
 
12. Language English=en en
 
13. Relation Supp. Files
 
14. Coverage Geo-spatial location, chronological period, research sample (gender, age, etc.)
 
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