Allocating Jobs under a Minimum Wage: Queues vs. Lotteries

Ira Gang and Edward Tower

The Economic Record, 1990, vol. 66, issue 3, 186-194

Abstract: In this paper we provide a simple diagrammatic technique for incorporating variable labour supply into the specific factors model We then use the framework to analyze the positive and normative effects of a minimum wage both with a broadly based employment lottery (on‐the‐job search) and with an employment queue (the Harris‐Todaro case). We discover that with a given minimum wage replacing the queue with a lottery may be welfare reducing.

Date: 1990
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https://doi.org/10.1111/j.1475-4932.1990.tb01721.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:ecorec:v:66:y:1990:i:3:p:186-194

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