A politico-economic analysis of minimum wages and wage subsidies
Antonis Adam and
Thomas Moutos
Economics Letters, 2011, vol. 110, issue 3, 171-173
Abstract:
This paper constructs a political economy model in which minimum wages are determined according to majority voting. Using the minimum wage scheme as the status quo, we show that the replacement of minimum wages by wage subsidies is not likely to receive political support unless it is supplemented by increased taxation of profits (after-tax profits are also likely to increase).
Keywords: Minimum; wages; Wage; subsidies; Majority; voting; Political; economy (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165-1765(10)00402-7
Full text for ScienceDirect subscribers only
Related works:
Working Paper: A Politico-Economic Analysis of Minimum Wages and Wage Subsidies (2006) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:110:y:2011:i:3:p:171-173
Access Statistics for this article
Economics Letters is currently edited by Economics Letters Editorial Office
More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().