Working Paper
Asymmetric Information Renders Minimum Wages Less Harmful
Ronnie Schöb, Marcel Thum
CESifo, Munich, 2009
CESifo Working Paper No. 2623
CESifo, Munich, 2009
CESifo Working Paper No. 2623
We show that a minimum wage introduced in the presence of asymmetric information about worker productivities will lead to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric information.
CESifo Category
Labour Markets
Labour Markets
Keywords: minimum wages, unemployment, asymmetric information, labour market regulation
JEL Classification: H500,J200,J300,L500