search query: @author Lommerud, K. E. / total: 2
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| Author: | Agell, J. Lommerud, K. E. |
| Title: | Minimum wages and the incentives for skill formation |
| Journal: | Journal of Public Economics
1997 : APR, VOL. 64:1, p. 25-40 |
| Index terms: | MINIMUM WAGE PAY EDUCATION LABOUR MARKETS |
| Language: | eng |
| Abstract: | Minimum wages can have beneficial effects in a less than perfectly competitive labor market. Minimum wage can have positive effects on the incentives to undertake education when firms and workers bargain over wages. The model here is one of a dual labor market, where primary sector employers prefer to hire high ability workers if they can find them, and where workers below a certain cut-off value of ability have to resort to work in some secondary sector. in this setting one motive for acquiring education is to gain access to the primary labor market. A minimum wage in the primary sector influences education in several ways. The finding that minimum wage may promote a more efficient allocation of human capital is in contrast to many other authors. |
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