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Duke Economics Working Paper #96-19
An Efficiency Enhancing Minimum Wage
Omer Gokcekus
and
Edward Tower
Abstract
We consider an economy (e.g. Chile 1973-83 or modern Turkey) with
a minimum
wage sector and a free sector, and a tax on labor earnings. We
ask can a minimum wage
hike raise employment and economic efficiency?
Key Words: minimum wage, economic efficiency
JEL: J31, J64
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