Dataciencia

Colección SciELO Chile

The macroeconomic consequences of raising the minimum wage: Capital accumulation, employment and the wage distribution

Indexado

WoS	WOS:000424716600004
Scopus	SCOPUS_ID:85033553134

DOI

10.1016/J.EUROECOREV.2017.09.012

Año

2018

Tipo

artículo de investigación

Citas Totales

Autores Afiliación Chile

Instituciones Chile

% Participación
Internacional

Autores
Afiliación Extranjera

Instituciones
Extranjeras

Abstract

We study the quantitative impact of a rise in the minimum wage on macroeconomic outcomes such as employment, the stock of capital and the distribution of wages. Our modeling framework is the large-firm search and matching model. Our comparative statics are in line with previous empirical findings: a moderate increase in the minimum wage barely affects employment, while it compresses the wage distribution and generates positive spillovers on higher wages. The model also predicts an increase in the stock of capital. Next, we perform the policy experiment of introducing a 10 dollar minimum wage. Our results suggest large positive effects on capital (4.0%) and output (1.8%), with a decrease in employment by 2.8%. The introduction of a 9 dollar minimum wage would instead produce similar effects on capital accumulation without harming employment. (C) 2017 Elsevier B.V. All rights reserved.

Revista

Revista	ISSN
European Economic Review	0014-2921

Métricas Externas

PlumX	Altmetric	Dimensions

Muestra métricas de impacto externas asociadas a la publicación. Para mayor detalle:

Plumx: https://plumanalytics.com/learn/about-metrics/
Altmetric: https://www.altmetric.com/about-altmetrics/what-are-altmetrics/
Dimensions: https://www.dimensions.ai/why-dimensions/

Disciplinas de Investigación

WOS
Economics

Scopus
Economics And Econometrics
Finance

SciELO
Sin Disciplinas

Muestra la distribución de disciplinas para esta publicación.

Publicaciones WoS (Ediciones: ISSHP, ISTP, AHCI, SSCI, SCI), Scopus, SciELO Chile.

Colaboración Institucional

Muestra la distribución de colaboración, tanto nacional como extranjera, generada en esta publicación.

Autores - Afiliación

Ord.	Autor	Género	Institución - País
1	Bauducco B, Sofia	Mujer	Banco Central de Chile - Chile
2	Janiak, Alexandre	Hombre	Pontificia Universidad Católica de Chile - Chile

Muestra la afiliación y género (detectado) para los co-autores de la publicación.

Financiamiento

Fuente
FONDECYT
Anillo in Social Sciences and Humanities

Muestra la fuente de financiamiento declarada en la publicación.

Agradecimientos

Agradecimiento
We would like to thank Ayse Imrohoroglu (the editor) and a referee for their comments, which greatly improved the previous version of this draft. We are also grateful to Felipe Balmaceda, Wouter den Haan, Markus Poschke, Toshi Mukoyama, Shouyong Shi, Lucciano Villacorta and Etienne Wasmer for useful comments, as well as participants at the Winter Econometric Society Meeting in Los Angeles, the European Economic Association Meetings in Toulouse and Lisbon, the CEF conference in Vancouver, the Econometric Society conference in Sao Paolo and EALE conference in Bonn, the SMAUG workshop, and seminar participants at FGV-Sao Paulo, Banque de France, Central Bank of Chile, UDP, USACH, PUC-Chile and CEA. We acknowledge funding from the Anillo in Social Sciences and Humanities (project SOC 1402 on "Search models: implications for markets, social interactions and public policy"). Alexandre Janiak also thanks Fondecyt (project no 1151053). All errors are our own.
We would like to thank Ayse Imrohoroglu (the editor) and a referee for their comments, which greatly improved the previous version of this draft. We are also grateful to Felipe Balmaceda, Wouter den Haan, Markus Poschke, Toshi Mukoyama, Shouyong Shi, Lucciano Villacorta and Etienne Wasmer for useful comments, as well as participants at the Winter Econometric Society Meeting in Los Angeles, the European Economic Association Meetings in Toulouse and Lisbon, the CEF conference in Vancouver, the Econometric Society conference in Sao Paolo and EALE conference in Bonn, the SMAUG workshop, and seminar participants at FGV-Sao Paulo, Banque de France, Central Bank of Chile, UDP, USACH, PUC-Chile and CEA. We acknowledge funding from the Anillo in Social Sciences and Humanities (project SOC 1402 on “Search models: implications for markets, social interactions and public policy”). Alexandre Janiak also thanks Fondecyt (project no 1151053 ). All errors are our own.

Agradecimiento

We would like to thank Ayse Imrohoroglu (the editor) and a referee for their comments, which greatly improved the previous version of this draft. We are also grateful to Felipe Balmaceda, Wouter den Haan, Markus Poschke, Toshi Mukoyama, Shouyong Shi, Lucciano Villacorta and Etienne Wasmer for useful comments, as well as participants at the Winter Econometric Society Meeting in Los Angeles, the European Economic Association Meetings in Toulouse and Lisbon, the CEF conference in Vancouver, the Econometric Society conference in Sao Paolo and EALE conference in Bonn, the SMAUG workshop, and seminar participants at FGV-Sao Paulo, Banque de France, Central Bank of Chile, UDP, USACH, PUC-Chile and CEA. We acknowledge funding from the Anillo in Social Sciences and Humanities (project SOC 1402 on "Search models: implications for markets, social interactions and public policy"). Alexandre Janiak also thanks Fondecyt (project no 1151053). All errors are our own.

We would like to thank Ayse Imrohoroglu (the editor) and a referee for their comments, which greatly improved the previous version of this draft. We are also grateful to Felipe Balmaceda, Wouter den Haan, Markus Poschke, Toshi Mukoyama, Shouyong Shi, Lucciano Villacorta and Etienne Wasmer for useful comments, as well as participants at the Winter Econometric Society Meeting in Los Angeles, the European Economic Association Meetings in Toulouse and Lisbon, the CEF conference in Vancouver, the Econometric Society conference in Sao Paolo and EALE conference in Bonn, the SMAUG workshop, and seminar participants at FGV-Sao Paulo, Banque de France, Central Bank of Chile, UDP, USACH, PUC-Chile and CEA. We acknowledge funding from the Anillo in Social Sciences and Humanities (project SOC 1402 on “Search models: implications for markets, social interactions and public policy”). Alexandre Janiak also thanks Fondecyt (project no 1151053 ). All errors are our own.