Wage discrimination and partial compliance with the minimum wage law

This paper presents a simple model to characterize the discriminatory behavior of a non-complying firm in a minimum-wage economy. In the analysis, the violating firm pays one “favored†group of workers the statutory minimum and the other “non-favored†group of workers a sub-minimum. We find conditions under which law enforcement is ineffective in improving the between-group wage differentials. We show that an increase in the minimum wage raises the sub-minimum wage and employment of workers in the non-favored group, but reduces the employment of workers in the favored group. The effect of the minimum wage increase on total employment is unambiguously negative, however.

Magnetization Plateau of Classical Ising Model on Shastry-Sutherland Lattice

We study the magnetization for the classical antiferromagnetic Ising model on the Shastry-Sutherland lattice using the tensor renormalization group approach. With this method, one can probe large spin systems with little finite-size effect. For a range of temperature and coupling constant, a single magnetization plateau at one third of the saturation value is found. We investigate the dependence of the plateau width on temperature and on the strength of magnetic frustration. Furthermore, the spin configuration of the plateau state at zero temperature is determined.Comment: 6 pages, 8 figure

Antidumping Petition: To File or Not To File

Given the “normal value†of a product as common knowledge in an import-competing market, the profitability of a home firm in filing an antidumping (AD) petition against its foreign rival is shown to depend on the marginal cost differential between the home and foreign firms. When the marginal cost differential is “significantly large,†the home firm's ability to put the foreign firm at the risk of an AD violation is limited. But when the marginal cost differential is “significantly small,†the home firm is able to increase its output and lower the price of the product below its normal value, putting the foreign firm in the situation of an illegal dumping. One interesting implication is that, relative to the case without an AD law, the home firm has a stronger incentive to undertake cost-reducing activities (e.g., R&D investment or the adoption of a more efficient technology) under the law.antidumping laws, antidumping duties, dumping margins