Minimum Wage Increase in a Competitive Economy

Burghelea Cristina (), Bãlan Mariana () and Vuþã Mariana ()
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Burghelea Cristina: Hyperion University of Bucharest, Romania
Bãlan Mariana: Institute for Economic Forecasting-NIER, Romanian Academy
Vuþã Mariana: The Bucharest Academy of Economic Studies, Romania
Authors registered in the RePEc Author Service: Mariana NICOLAE-BALAN ()

Ovidius University Annals, Economic Sciences Series, 2014, vol. XIV, issue 2, 144-148

Abstract: Administrative prices, lower or upper price limit imposed by the state has consequences for employees and employers: an increase in the minimum wage is lower and is below the price of the offer is irrelevant to this situation, the emergence of rising inflation imposed minimum wage increase, so all employers would like to increase selling prices of products not to fail, directly generating involuntary unemployment imposed minimum wage increase, employers can not raise prices because they compete directly with other existing companies market efficiency activities will be reduced, it will go bankrupt and employees will no longer have a job. Article demonstrates the importance of the minimum wage in a distorted economy and the way it contributes to competitive economic growth.

Keywords: labor market; minim wage; economic growth; competitiveness. (search for similar items in EconPapers)
JEL-codes: F43 F66 J21 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xiv:y:2014:i:2:p:144-148

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