%0 Report
        %A Strobl, Eric
%A Walsh, Frank
        %T Getting It Right: Employment Subsidy or Minimum Wage?
        %D 2002
        %8 2002 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 662
        %U https://www.iza.org/index.php/publications/dp662
        %X In monopsony models of the labour market either a minimum wage or an employment subsidy financed by a lump sum tax on profits can achieve the efficient level of employment and output. Incorporating working conditions into a monopsony model where higher wages raise firm labour supply, but less attractive working conditions reduce it, changes these policy implications. Specifically, a minimum wage policy could, in contrast to an employment subsidy, cause working conditions to deteriorate and welfare to fall. Empirical evidence from the Republic of Trinidad and Tobago shows that a minimum wage may indeed cause working conditions to worsen.
        %K minimum wage
%K working conditions
%K monopsony models