The ambiguous effect of minimum wages on hours

Eric Strobl () and Frank Walsh

Labour Economics, 2011, vol. 18, issue 2, 218-228

Abstract: In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.

Keywords: Minimum; wages; Hours; Employment (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (17)

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