The Minimum Wage Puzzle in Less Developed Countries: Reconciling Theory and Evidence

Author/Editor:

Christopher S Adam ; Edward F Buffie

Publication Date:

January 31, 2020

Electronic Access:

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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. 20/23

Subject:

English

Publication Date:

January 31, 2020

ISBN/ISSN:

9781513527888/1018-5941

Stock No:

WPIEA2020023

Format:

Paper

Pages:

77

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