LOBBYING FOR MINIMUM WAGES.

Using a common agency lobbying framework, this paper illustrates how the minimum wage set reflects the interaction between economic and political factors and under what circumstances will the policymaker be induced, through lobbying, to change the minimum wage. Specifically, when the labor demand el...

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Publicado en:Economic Inquiry Vol. 56; no. 4; pp. 2027 - 2058
Autor principal: Lesica, Josip
Formato: Artículo
Publicado: Wiley-Blackwell Oct2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/ecin.12692
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        atl: LOBBYING FOR MINIMUM WAGES.
      aug:
        au: Lesica, Josip
        affil: Department of Economics, McMaster University, Hamilton, ON, L8S 4M4, Canada
      su:
        Income maintenance programs
        Living wage movement
        Government policy
        Wages
        Lobbying
        Minimum wage -- Government policy
      sug:
        subj:
          Income maintenance programs
          Living wage movement
          Government policy
          Wages
          Lobbying
          Public Relations Agencies
          Minimum wage -- Government policy
      ab: Using a common agency lobbying framework, this paper illustrates how the minimum wage set reflects the interaction between economic and political factors and under what circumstances will the policymaker be induced, through lobbying, to change the minimum wage. Specifically, when the labor demand elasticity is large, lobbying is successful in inducing the policymaker to set the minimum wage in accordance with her political ideology. However, the paper also shows the conditions under which lobbying will reverse the ideological preference and induce a business‐friendly government to increase the minimum wage. Empirical analysis on a panel data for ten Canadian provinces gives considerable support for theoretical predictions. The real minimum wage decreases in skill‐adjusted union density and political ideology, while larger labor demand elasticity reinforces the influence of political ideology in the presence of lobbying. (JEL J38, D72, D78)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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