TY  - RPRT
        AU  - Strobl, Eric
AU  - Walsh, Frank
        TI  - Getting It Right: Employment Subsidy or Minimum Wage?
        PY  - 2002/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 662
        UR  - https://www.iza.org/publications/dp662
        AB  - 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.
        KW  - minimum wage
KW  - working conditions
KW  - monopsony models
        ER  -