Larrain, Mauricio and Poblete Lavanchy, Joaquin J. (2007) Age-differentiated minimum wages in developing countries. Journal of Development Economics, 84 (2). pp. 777-797. ISSN 0304-3878
Full text not available from this repository.Abstract
The fact that minimum wages seem especially binding for young workers has led some countries to adopt age-differentiated minimum wages. We develop a dynamic competitive two-sector labor market model where workerswith heterogeneous initial skills gain productivity through experience.We compare two equally binding schemes of single and age-differentiated minimumwages, and find that although differentiated minimumwages result in a more equal distribution of income, such a scheme creates a more unequal distribution of wealth by forcing less skilled workers to remain longer in the uncovered sector.We also show that relaxing minimumwage solely for young workers reduces youth unemployment but harms the less skilled ones.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.elsevier.com/wps/find/journaldescriptio... |
| Additional Information: | © 2007 Elsevier |
| Divisions: | Management |
| Subjects: | H Social Sciences > HJ Public Finance H Social Sciences > HN Social history and conditions. Social problems. Social reform |
| Date Deposited: | 11 May 2011 11:57 |
| Last Modified: | 11 Dec 2024 23:12 |
| URI: | http://eprints.lse.ac.uk/id/eprint/36093 |
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