The Minimum Wage Puzzle in Less Developed Countries: Reconciling Theory and Evidence
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Summary:
We show that a dynamic general equilibrium model with efficiency wages and endogenous capital accumulation in both the formal and (non-agricultural) informal sectors can explain the full range of confounding stylized facts associated with minimum wage laws in less developed countries.
Series:
Working Paper No. 2020/023
Subject:
English
Publication Date:
January 31, 2020
ISBN/ISSN:
9781513527888/1018-5941
Stock No:
WPIEA2020023
Pages:
77
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