The Impact of Introducing a Minimum Wage on Business Cycle Volatility : A Structural Analysis for Hong Kong SAR »
Series: IMF Working Papers
Author(s): International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 2008
Keywords: indexation mechanism, business cycle volatility, dynamic stochastic general equilibrium model, unobserved components model, market flexibility, small open economy, wage, wage inflation, price inflation,
We study the impact of a minimum wage on business cycle volatility, depending upon its coverage and adjustment mechanism. As with other small open economies, Hong Kong SAR is vulnerable to external shocks, with its...