Journal of Labor Economics Vol. 19 No. 1 2001
Good Jobs versus Bad Jobs
Abstract
This article develops a model of noncompetitive labor markets in which high-wage (good) and low-wage (bad) jobs coexist. Minimum wages and unemployment benefits shift the composition of employment toward high-wage jobs. Because the composition of jobs in the laissez-faire equilibrium is inefficiently biased toward low-wage jobs, these labor market regulations increase average labor productivity and may improve welfare.
- DOI
- 10.1086/209978
- Volume
- 19
- Issue
- 1
- Pages
- 1-21
- Language
- en
- Sources
- crossref openalex