Minimum Wages, Capital Accumulation and Worker's Incomes

George Economides and Thomas Moutos

No 4821, CESifo Working Paper Series from CESifo

Abstract: Using an intertemporal model of saving and capital accumulation we demonstrate that it is impossible for any binding minimum wage to increase the after-tax incomes of workers if the production function is Cobb-Douglas with constant returns to scale, or if there are no differences in ability among workers.

Keywords: minimum wage; capital accumulation; heterogeneity; unemployment (search for similar items in EconPapers)
JEL-codes: E21 E24 E64 H23 J23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4821

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