The macroeconomics of the social chapter: minimum wages, human capital and labour productivity
Abstract
This paper integrates trade and macro theory to provide a two‐country, multi‐product framework, including debt servicing and profit repatriation in the current account, and foreign money, financial assets and shares in the capital account. We investigate the effects of minimum wage legislation on the domestic tradeables and inward foreign investment sectors. Our findings show that there are asymmetrical effects on international debt and competitiveness. Thus, policy makers must have a more detailed knowledge of the sectoral structure of the country they are concerned with, in order to make informed decisions as to the merits of minimum wage legislation.
Keywords
Citation
Gazioglu, S. and McCausland, W.D. (2003), "The macroeconomics of the social chapter: minimum wages, human capital and labour productivity", Journal of Economic Studies, Vol. 30 No. 6, pp. 562-583. https://doi.org/10.1108/01443580310504444
Publisher
:MCB UP Ltd
Copyright © 2003, MCB UP Limited