scholarly journals Macroeconomic Long-Run Effects of the German Minimum Wage when Labor Markets are Frictional

2020 ◽  
Vol 240 (2-3) ◽  
pp. 351-386 ◽  
Author(s):  
Helge Braun ◽  
Roland Döhrn ◽  
Michael Krause ◽  
Martin Micheli ◽  
Torsten Schmidt
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Structural Model ◽  
Economic Effects ◽  
Relative Price ◽  
Wage Policy ◽  
Market Outcomes ◽  
Long Run ◽  
Search And Matching Frictions ◽  
Negative Effect

AbstractThis paper analyzes the introduction of the German minimum wage in 2015 in a structural model geared to quantitatively assess its long-run economic effects. We first employ a simple neoclassic model where wages equal their marginal product, then extend this model to two sector economy, and finally introduce search and matching frictions. Even though all model variants remain highly stylized, they yield quantitative insights on the importance of different mechanisms and channels through which minimum wages affect outcomes in the long run. In this framework, the minimum wage has a strong negative effect on employment. When sectors are differently affected by the minimum wage, sectoral relative price changes play an important quantitative role. Other labor market policies and institutions are important for the transmission of minimum wage policy on labor market market outcomes.

scholarly journals Back to Square One: Socioeconomic Integration of Deported Migrants

2017 ◽  
Vol 51 (1) ◽  
pp. 127-154 ◽  
Author(s):  
Anda M. David
Keyword(s):  
Labor Market ◽  
Home Environment ◽  
Point Of View ◽  
Market Outcomes ◽  
Socioeconomic Integration ◽  
Long Run ◽  
Negative Effect ◽  
Sociocultural Integration ◽  
Forced Return ◽  
Migration De Retour

This paper addresses the issue of socioeconomic integration of forced return migrants, focusing on the Maghreb countries. Starting from the hypothesis that the return has to be prepared, I tested whether a disruption in the migration cycle (such as deportation) increases the individual's vulnerability and affects his integration from both a structural and sociocultural point of view, using the 2006 Migration de Retour au Maghreb (MIREM, or Return Migration to the Maghreb) survey. I found that forced returnees are more vulnerable to negative labor market outcomes compared to voluntary returnees. The absence of forced returnees from the labor market, or their underperformances, creates a net loss for the origin country and also incentives to re-migrate. The negative effect is statistically significant not only immediately after return, but also in the long run, at survey time. Forced return is also significantly and negatively correlated with sociocultural integration, reflecting a marginalization of deported migrants in their home environment, which may act as a re-emigration incentive.

scholarly journals Children and Careers: How Family Size Affects Parents’ Labor Market Outcomes in the Long Run

Demography ◽  
2017 ◽  
Vol 54 (5) ◽  
pp. 1773-1793 ◽  
Author(s):  
Sara Cools ◽  
Simen Markussen ◽  
Marte Strøm
Keyword(s):  
Labor Market ◽  
Family Size ◽  
Labor Market Outcomes ◽  
Market Outcomes ◽  
Long Run

Wynagrodzenie minimalne a ubóstwo, nierówności dochodowe i bezrobocie w Polsce

2016 ◽  
pp. 87-100
Author(s):  
Aneta Mikuła
Keyword(s):  
Income Inequality ◽  
Minimum Wage ◽  
Policy Instrument ◽  
Social Consequences ◽  
Economic Effects ◽  
Labor Costs ◽  
Average Salary ◽  
Wage Policy ◽  
Social Functions ◽  
The Impact

The minimum wage is the wage policy instrument, entailing both economic and social consequences. Supporters of the minimum wage emphasize its role in reducing poverty and reducing income inequalities. In turn, opponents focus on its economic effects, i.e. increase in labor costs and decline in employment. The article focuses on identifying the impact of the minimum wage on reducing poverty and income inequality. The first part contains definitions and the economic and social functions of the minimum wage. The next section presents changes in the minimal salary level in Poland and its relation to the average salary in the years 2003–2014. The rest of the article attempts to assess the effectiveness of raising the minimum wage in combating poverty and reducing income inequality. The effectiveness of this solution is minimal, both in terms of the whole society, as well as socio-economic group, which should benefit most from these effects, i.e. employees.

Book Reviews

2013 ◽  
Vol 51 (2) ◽  
pp. 558-560
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Job Search ◽  
Labor Market Outcomes ◽  
Minimum Wages ◽  
New York University ◽  
Market Outcomes ◽  
Welfare Impacts ◽  
Wage Effects ◽  
The Impact

Etienne Wasmer of Sciences Po and LIEPP reviews, “The Minimum Wage and Labor Market Outcomes” by Christopher J. Flinn. The Econlit abstract of this book begins: “Presents a model based on search and bargaining to use in investigating the impact of a minimum wage on labor market outcomes. Discusses descriptive evidence on minimum wage effects; a model of minimum wage effects on labor market careers; labor market and welfare impacts of minimum wages; minimum wage effects on labor market outcomes—a selective survey; assessing the welfare impacts of actual changes in the minimum wage; econometric issues; model estimates and tests; optimal minimum wages; the on-the-job search; and heterogeneity. Flinn is Professor of Economics at New York University and Senior Research Fellow at Collegio Carlo Alberto.”

Illicit Drug Use and Labor Market Outcomes: A Review of Economic Theory and its Empirical Implications

1998 ◽  
Vol 28 (3) ◽  
pp. 663-680 ◽  
Author(s):  
Robert Kaestner
Keyword(s):  
Economic Theory ◽  
Labor Market ◽  
Drug Use ◽  
Structural Model ◽  
Causal Effect ◽  
Labor Market Outcomes ◽  
Behavioral Model ◽  
Individual Choice ◽  
Market Outcomes ◽  
The Relationship

In this paper, I outline the economic theory pertinent to the analysis of the effect of drug use on labor market outcomes. I argue that the complex behavioral links that underlie the relationship between drug use and labor market outcomes make it necessary to explicitly model the process that determines both of these outcomes. Only then can effective empirical strategies be developed that will yield credible estimates of the causal effect of drug use on labor market outcomes. Economic theory is well suited to this task since at its core it is a behavioral model of individual choice. I also discuss some methodological strategies that can be used to address the empirical problems associated with estimating such a structural model.

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