Distributional impacts of a local living wage increase with ability sorting

Tom Ahn

Economics Letters, 2011, vol. 112, issue 3, 283-286

Abstract: I develop a model of ability sorting of low-wage workers across multiple markets when one market substantially increases its wage floor using a living wage. The wage floor increase can increase or decrease employment probabilities in both covered and uncovered markets.

Keywords: Living; wage; Minimum; wage; Search; Multiple; markets; Ability; sorting (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:112:y:2011:i:3:p:283-286

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