Wage and effort dispersion

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.

Item Type: Article
Keywords: Wage posting; Productivity dispersion; Minimum wage; finance
Subject(s): Finance
Date Deposited: 25 Sep 2015 14:23
Last Modified: 02 Mar 2017 14:17
Funders: not applicable
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5515

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