How do you know that real wages are too high?
Manning, Alan
(1995)
How do you know that real wages are too high?
Quarterly Journal of Economics, 110 (4).
pp. 1111-1125.
ISSN 0033-5533
It is a common belief that the existence of involuntary unemployment implies that wages are too high and that wage moderation should be encouraged as a way to keep unemployment down. This paper argues for a reconsideration of this view by showing that it is possible for a binding minimum wage to reduce unemployment or increase employment even if there is involuntary unemployment.
| Item Type | Article |
|---|---|
| Departments |
Centre for Economic Performance Economics |
| DOI | 10.2307/2946650 |
| Date Deposited | 30 Jun 2008 09:15 |
| URI | https://researchonline.lse.ac.uk/id/eprint/5988 |
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ORCID: https://orcid.org/0000-0002-7884-3580