Shapiro, Joel (2006) Wage and effort dispersion. Economics Letters, 92 (2). pp. 163-169.
We construct a simple model where ex-ante homogeneous firms offer jobs with different wages and effort levels to ex-ante homogeneous workers. A minimum wage is shown to be welfare reducing because of its effect on the distribution of wages and effort.
|Keywords:||Wage posting; Productivity dispersion; Minimum wage|
|Centre:||Faculty of Finance|
|Date Deposited:||25 Sep 2015 14:23|
|Last Modified:||23 Oct 2015 14:08|
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