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The minimum wage in the dominant firm model

Author

Listed:
  • Shilov, Andrey
  • Tourovsky, Boris

Abstract

"This paper examines the impact of minimum wage in a dominant firm model. It is shown that in a labor-intensive market, the introduction of a binding minimum wage creates an entry barrier in the short run and increases unemployment in the long run." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Shilov, Andrey & Tourovsky, Boris, 2008. "The minimum wage in the dominant firm model," IAB-Discussion Paper 200823, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:200823
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    File URL: https://doku.iab.de/discussionpapers/2008/dp2308.pdf
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    References listed on IDEAS

    as
    1. Manning, Alan, 2003. "The real thin theory: monopsony in modern labour markets," Labour Economics, Elsevier, vol. 10(2), pages 105-131, April.
    2. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
    3. William P. Rogerson, 1984. "A Note on the Incentive for a Monopolist to Increase Fixed Costs as a Barrier to Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(2), pages 399-402.
    4. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
    5. Rebitzer, James B. & Taylor, Lowell J., 1995. "The consequences of minimum wage laws Some new theoretical ideas," Journal of Public Economics, Elsevier, vol. 56(2), pages 245-255, February.
    6. William M. Boal & Michael R. Ransom, 1997. "Monopsony in the Labor Market," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 86-112, March.
    7. repec:fth:prinin:300 is not listed on IDEAS
    8. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    9. Cahuc, P. & Saint-Martin, A. & Zylberberg, A., 2001. "The consequences of the minimum wage when other wages are bargained over," European Economic Review, Elsevier, vol. 45(2), pages 337-352, February.
    10. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
    11. Alan Manning, 1995. "How Do We Know That Real Wages Are Too High?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1111-1125.
    12. Robert Cherry, 2000. "The Dominant Firm Model Revisited," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 89-95, February.
    13. Oliver E. Williamson, 1968. "Wage Rates as a Barrier to Entry: The Pennington Case in Perspective," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(1), pages 85-116.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bruckmeier, Kerstin & Graf, Tobias & Rudolph, Helmut, 2008. "Working poor: Arm oder bedürftig? : eine Analyse zur Erwerbstätigkeit in der SGB-II-Grundsicherung mit Verwaltungsdaten," IAB-Discussion Paper 200834, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Auswirkungen ; Beschäftigungseffekte ; Dienstleistungsbereich ; Großunternehmen ; Mindestlohn ; Monopol ; Post ; Arbeitslosigkeit ; Unternehmensgründung ; Wettbewerb ; Wirtschaftsstruktur;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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