Good Jobs versus Bad Jobs

Daron Acemoglu
2001 Journal of Labor Economics  
This article develops a model of noncompetitive labor markets in which high-wage (good) and low-wage (bad) jobs coexist. Minimum wages and unemployment benefits shift the composition of employment toward high-wage jobs. Because the composition of jobs in the laissez-faire equilibrium is inefficiently biased toward low-wage jobs, these labor market regulations increase average labor productivity and may improve welfare.
doi:10.1086/209978 fatcat:dypwkcsumbbvfbvm4l3uqztnb4