Does Minimum Wage Cause Inflation? | ||
فصلنامه تحقیقات اقتصادی | ||
Article 9, Volume 44, Issue 1, February 2009 PDF (271.04 K) | ||
Authors | ||
Nader Mehregan; Ruholah Rezaee | ||
Abstract | ||
This paper reviews the relationship between inflation rate and minimum wage in Iran’s economy over the 1969-2005. According to the economic literature, there is a narrow relationship between inflation rate and minimum wage. Some economists believe in increased inflation due to minimum wage. The other group of economists considers the increased inflation as a cause for increasing minimum wage. The study results do confirm the existence of causal relationship from inflation rate to minimum wage. JEL Classification: E24, E31, J31 . | ||
Keywords | ||
Causal Relationship; Inflation; minimum wage | ||
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