We examine the effects of minimum wages on both the long-run per worker GDP and welfare in the textbook Diamond style overlapping generations economy. In addition, we assume the existence of unemployment benefits financed at a balanced budget with consumption taxes. Under suitable conditions, it is shown that a regulated-wage economy with unemployment performs better than a competitive-wage economy with full employment in the long run. Moreover, a welfare-maximizing minimum wage exists. Our findings may have interesting policy implications.
|Autori interni:||FANTI, LUCIANO|
|Autori:||FANTI L; AND L. GORI|
|Titolo:||Economic growth and welfare in a neoclassical overlapping generations growth model with minimum wages and consumption taxes.|
|Anno del prodotto:||2010|
|Digital Object Identifier (DOI):||10.1111/j.1467-9914.2010.00486.x|
|Appare nelle tipologie:||1.1 Articolo in rivista|