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Minimum Wages and the Card‐Krueger Paradox
Author(s) -
Shepherd A. Ross
Publication year - 2000
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.2000.tb00348.x
Subject(s) - monopsony , economics , labour economics , microeconomics
An apparent paradox perceived by Card and Krueger concerning the relationship between minimum wages, employment, and output prices is resolved by revisiting the economics of minimum wages to show that under monopsonistic conditions in the labor market and competitive price‐taking in the market for output, increases in both firm‐level and industry employment are compatible with increases in output prices.