The Minimum Wage Puzzle in Less Developed Countries : Reconciling Theory and Evidence /

We show that a dynamic general equilibrium model with efficiency wages and endogenous capital accumulation in both the formal and (non-agricultural) informal sectors can explain the full range of confounding stylized facts associated with minimum wage laws in less developed countries.

Bibliographic Details
Main Author: Adam, Christopher
Other Authors: Buffie, Edward
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2020.
Series:IMF Working Papers; Working Paper ; No. 2020/023
Online Access:Full text available on IMF