Pigou on the Minimum Wage: An Institutional Inquiry into the Labour Market
In this paper I examine A. C. Pigou's views on the institutional and theoretical aspects of the minimum wage. Pigou acknowledged the need for a minimum wage to redress exceptionally low wages, but this was subject to two provisos: first, when determining the minimum wage, one should not aim for...
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| Published in | History of economics review Vol. 49; no. 1; pp. 32 - 44 |
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| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
Routledge
01.01.2009
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| Online Access | Get full text |
| ISSN | 1037-0196 1838-6318 |
| DOI | 10.1080/18386318.2009.11682140 |
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| Summary: | In this paper I examine A. C. Pigou's views on the institutional and theoretical aspects of the minimum wage. Pigou acknowledged the need for a minimum wage to redress exceptionally low wages, but this was subject to two provisos: first, when determining the minimum wage, one should not aim for a wage that meets some standard of living; and, second, as the prevailing British trades system of the day provided for differential wage rates for different trades, the coverage of minimum wage must be limited to low-paid workers. Pigou distinguished three types of employees according to their bargaining power and strongly advocated protection for the weakest workers through a minimum wage. |
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| ISSN: | 1037-0196 1838-6318 |
| DOI: | 10.1080/18386318.2009.11682140 |