The Minimum Wage Puzzle in Less Developed Countries: Reconciling Theory and Evidence
Christopher S Adam and
Edward F Buffie
No 2020/023, IMF Working Papers from International Monetary Fund
We show that a dynamic general equilibrium model with efficiency wages and endogenous capital accumulation in both the formal and (non-agricultural) informal sectors can explain the full range of confounding stylized facts associated with minimum wage laws in less developed countries.
Keywords: Real sector; Price indexes; Employment; Labor market characteristics; Human capital; climate economics,disaster risk,macro feedbacks,multi-phase macro model,monetary and financial policies,environmental economics,WP,formal sector,cost share,employment loss,empirical estimate,LDCs (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2020/023
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Jim Beardow () and Hassan Zaidi ( this e-mail address is bad, please contact ).