The ambiguous effect of minimum wages on workers and total hours

Eric Strobl () and Frank Walsh

No 200714, Working Papers from School of Economics, University College Dublin

Abstract: We model a standard competitive labour market where firms choose combinations of workers and hours per worker to produce output. If one assumes that the scale of production has no impact on hours per worker, then the change in the number of workers and hours per worker resulting from a minimum wage are inversely related. We also demonstrate that total hours worked at the firm may rise if there are small fixed costs to hiring workers.

Keywords: Minimum wages; Hours; Employment; Hours of labor; Minimum wage; Labor supply (search for similar items in EconPapers)
JEL-codes: J22 J38 (search for similar items in EconPapers)
Date: 2007-08
New Economics Papers: this item is included in nep-bec and nep-lab
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http://hdl.handle.net/10197/958 First version, 2007 (application/pdf)

Related works:
Working Paper: The Ambiguous Effect of Minimum Wages on Workers and Total Hours (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:200714

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