Minimum Wage and Job Complexity

Samir Amine and Pedro Lages Dos Santos

CIRANO Working Papers from CIRANO

Abstract: This article aims to understand how public policies affect the behavior of agents in term of selectivity. In other words, we explain how the state of the labour market and, in particular qualification level of workers, affects technological choices of firms. Using a matching model in which workers are vertically differentiated and where the nature of jobs is endogenous, we show that an increase in minimum wage can enhance the recruiting of skilled workers by making firms more selective and jobs more complex. Cet article vise à mieux comprendre comment les régulations publiques modifient le comportement des agents en termes de sélectivité et comment les entreprises adaptent les caractéristiques de leurs emplois en fonction de l'état du marché du travail et, notamment du niveau de qualification de la population active. En utilisant un modèle d'appariement dans lequel les travailleurs sont différenciés verticalement et la nature des emplois est endogène, nous montrons que la revalorisation du salaire minimum peut favoriser l'embauche des qualifiés en rendant les entreprises plus sélectives et les emplois plus complexes.

Keywords: Minimum Wage; Productivity; Participation.; Salaire minimum; productivité et participation. (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Date: 2011-01-01
New Economics Papers: this item is included in nep-dge, nep-hrm and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2011s-04

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