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Title: The macroeconomic effects of the wage gap between regular and non-regular employment and of minimum wages
Authors: Sasaki, Hiroaki  kyouindb  KAKEN_id
Matsuyama, Jun
Sako, Kazumitsu
Author's alias: 佐々木, 啓明
Keywords: Wage gap
Regular and non-regular employment
Minimum wage
Demand-led growth model
Issue Date: Sep-2013
Publisher: Elsevier B.V.
Journal title: Structural Change and Economic Dynamics
Volume: 26
Start page: 61
End page: 72
Abstract: We develop a disequilibrium macrodynamic model in which two types of labor (regular and non-regular employment) are incorporated. We analyze how the expansion of the wage gap between regular and non-regular employment affects the economy. If the steady state equilibrium exhibits the wage-led demand regime, an increase in the wage gap does not affect the stability of equilibrium. In this case, the size of the reserve army effect affects the stability of the equilibrium. If the reserve army effect is strong, the steady state equilibrium is unstable. On the other hand, if the steady state equilibrium exhibits the profit-led demand regime, an increase in the wage gap destabilizes the equilibrium. It is possible that depending on conditions, an increase in the wage gap produces endogenous and perpetual business cycles. The introduction of the minimum wage is desirable in that it mitigates business cycle fluctuations. However, the introduction of an inappropriate minimum wage policy leads to a real wage and an employment rate that are lower than the steady state values.
Rights: © 2013 Elsevier B.V.
This is not the published version. Please cite only the published version. この論文は出版社版でありません。引用の際には出版社版をご確認ご利用ください。
URI: http://hdl.handle.net/2433/178154
DOI(Published Version): 10.1016/j.strueco.2013.06.001
Appears in Collections:Journal Articles

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