Journal Facts

Journal
Journal of Collective Negotiations
ISSN
2167-7816 (print) 2167-7824 (electronic)
Volume
32
Issue
1
Date
1/1/2008

Article Facts

Title
A Review of Minimum Wage Regulation Effect—The Resource-Based View Perspective
DOI
10.2190/CN.32.1.g
Authors
  • Zelimir William Todorovic
  • Jun Ma
Pages
57-75
Online Date
04/29/2008

Article Links

A Review of Minimum Wage Regulation Effect—The Resource-Based View Perspective

Zelimir William Todorovic
Jun Ma

DOI: 10.2190/CN.32.1.g

Abstract

The debate around minimum wage regulations, in the aftermath of recent regulatory changes in the United States, continues to grow. This article contributes to present literature by engaging the minimum wage controversy from the resource-based view theoretical perspective. Based on literature review, we find that minimum wage regulations appear to exhibit different impacts in different countries. Using meta-analysis of the related literature, we propose a conceptual framework that highlights the relationship between national resource base and minimum wage regulatory impact. Specifically, we posit that minimum wage impact on a country, such as the United States, is moderated by the national resource base. Further, we identify opportunity cost associated with inadequate minimum wage regulations, as consisting of education, entrepreneurial propensity, and cost divergence. Our conclusions point to the positive effects of the minimum wage controls, including increased education, more productive operating practices, and the emphasis on skill development and high value activities.

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