Exploring a living wage, Isolated Islands, and possible macro monopsony using a CGE
Abstract:
<p>Increases in regional minimum wage in places like Hawaii have been a highly contentious issue with hundreds of inconclusive studies across the country as to its benefits or costs. This exploratory study introduces geography and a computable general equilibrium (CGE) model along with possible “macro monopsony” into this debate for a highly isolated island economy where a large portion of its activity are dominated by exports to the hospitality industry. This work demonstrates how such circumstances can be modeled using a CGE and explores to what degree a change in minimum wage would re-calibration the balance of returns between labor and capital. The benefit of this study is to demonstrate how the question of possible macro monopsony under circumstances of geographic isolation can be modeled and understood using a CGE and how this relates to a living wage.</p><p>Key words: Hawaii, living wage, computable general equilibrium, macro monopsony</p>
Keywords: Hawaii, living wage, computable general equilibrium, macro monopsony
Authors:
Patrick Buckley, Western Washington University; Submitting Author / Primary Presenter