Allocating Jobs under a Minimum Wage: Queues vs. Lotteries

Published

Journal Article

In this paper we provide a simple diagrammatic technique for incorporating variable labour supply into the specific factors model We then use the framework to analyze the positive and normative effects of a minimum wage both with a broadly based employment lottery (on‐the‐job search) and with an employment queue (the Harris‐Todaro case). We discover that with a given minimum wage replacing the queue with a lottery may be welfare reducing. Copyright © 1990, Wiley Blackwell. All rights reserved

Full Text

Duke Authors

Cited Authors

  • GANG, IN; TOWER, E

Published Date

  • January 1, 1990

Published In

Volume / Issue

  • 66 / 3

Start / End Page

  • 186 - 194

Electronic International Standard Serial Number (EISSN)

  • 1475-4932

International Standard Serial Number (ISSN)

  • 0013-0249

Digital Object Identifier (DOI)

  • 10.1111/j.1475-4932.1990.tb01721.x

Citation Source

  • Scopus