Article citationsMore>>

K. Futagami, Y. Morita and A. Shibata, “Dynamic Analysis of an Endogenous Growth Model with Public Capital,” Scandinavian Journal of Economics, Vol. 95, No. 4, 1993, pp. 606-625. http://dx.doi.org/10.2307/3440914

has been cited by the following article:

• TITLE: Minimum Wage, Public Investment, Economic Growth

  AUTHORS: Minoru Watanabe

  KEYWORDS: Minimum Wage; Public Investment; Economic Growth

  JOURNAL NAME: Theoretical Economics Letters, Vol.3 No.5, October 22, 2013

  ABSTRACT: This paper considers the relationship between economic growth and minimum wage. Minimum wage helps reduce poverty and maintain a minimum standard of living. However, it is also claimed that minimum wage has a negative effect on employment and GDP. This paper develops a simple two-period overlapping generation model with three economic policies, minimum wage, unemployment benefit, and public investment that improves labor productivity. The government imposes tax on firms to finance public capital and unemployment benefit under a balanced budget. We show that economic growth is promoted with an increase in minimum wage and the ratio of public investment to tax revenue.