The rational of minimum wages

Herr, Hansjörg

dc.date.accessioned	2021-03-18T13:54:53Z
dc.date.available	2021-03-18T13:54:53Z
dc.date.issued	2021-03
dc.identifier	doi:10.17170/kobra-202102053128
dc.identifier.uri	http://hdl.handle.net/123456789/12651
dc.language.iso	eng	eng
dc.publisher	kassel university press
dc.rights	Namensnennung - Weitergabe unter gleichen Bedingungen 4.0 International	*
dc.rights.uri	http://creativecommons.org/licenses/by-sa/4.0/	*
dc.subject	income distribution	eng
dc.subject	labour market	eng
dc.subject	Keynesian paradigm	eng
dc.subject	minimum wages	eng
dc.subject	monopsony	eng
dc.subject	wage dispersion	eng
dc.subject.ddc	310
dc.subject.ddc	330
dc.title	The rational of minimum wages	eng
dc.type	Working paper
dcterms.abstract	Leaving labour markets to the market mechanism with flexible wages is the worst thing that can happen as the result would be a permanent destabilisation of the price level and an explosion of inequality—both of which adds to the instabilities of capitalism. Guarantee of minimum wages can play an important role to contain the destabilising potential of labour markets. They can add to the stability of price level development and help establish a type of wage dispersion preferred by society. Minimum wages do not lead to unemployment. Countries with very high wage dispersion can have high unemployment while those with low wage dispersion might ensure full employment. Looking at the distribution effect, minimum wage increases (which compress the wage structure from below) not only lead to redistribution within wage earners, but also can increase wage shares. Minimum wage policy should play an important and active role in macroeconomic management of an economy which in turn is linked with macroeconomic demand management so that the employment rate is maintained high.	eng
dcterms.accessRights	open access
dcterms.creator	Herr, Hansjörg
dcterms.extent	29 Seiten
dcterms.isPartOf	ICDD Working Papers ;; No. 35	ger
dc.contributor.corporatename	Berlin School of Economics and Law, Germany	eng
dc.publisher.place	Kassel
dc.relation.isbn	978-3-7376-0929-6
dc.subject.swd	Einkommensverteilung	ger
dc.subject.swd	Arbeitsmarkt	ger
dc.subject.swd	Keynessche Theorie	ger
dc.subject.swd	Paradigma <Wissenschaftstheorie>	ger
dc.subject.swd	Mindestlohn	ger
dc.subject.swd	Monopson	ger
dc.type.version	publishedVersion
dcterms.source.series	ICDD Working Papers	ger
dcterms.source.volume	No. 35	ger
kup.iskup	true
kup.series	ICDD Working Papers
kup.subject	Sozialwissenschaft
kup.typ	Monographie
kup.institution	FB 05 / Gesellschaftswissenschaften
kup.binding	Softcover
kup.size	DIN A4