Christian Ragacs develops new contributions to the theory of
minimum wages, while taking rationing and spill-over effects on
markets other than the labour market into account. Following an
introduction into the theory of minimum wages and a discussion of
methodological problems, four new theoretical models are developed;
two of them comparative static in nature and two models of
endogenous growth. The results are contradictory--partly supporting
the "textbook" theory and partly yielding unorthodox results, such
as no change in the steady state rates of growth and
employment.
General
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