Optimal Minimum Wage in a Competitive Economy
نویسندگان
چکیده
منابع مشابه
Optimal Minimum Wage in Competitive Labor Markets∗
This paper presents a theoretical analysis of optimal minimum wage policy in a perfectly competitive labor market. Introducing a minimum wage is desirable if the government values redistribution toward low wage workers. This result remains true in the presence of optimal nonlinear taxes and transfers. In that context, a minimum wage effectively rations low skilled labor which is subsidized by t...
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This paper provides a theoretical analysis of optimal minimum wage policy in a perfectly competitive labor market. We show that a binding minimum wage – while leading to unemployment – is nevertheless desirable if the government values redistribution toward low wage workers and minimum wage induced unemployment hits the lowest surplus workers first. This result remains true in the presence of o...
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This paper argues how an increase in minimum wage affects employment, consumption, and social welfare with dynamic general equilibrium model without market frictions. The study demonstrates that a minimum wage hike reduces an actual unemployment rate and has positive effects on an employment rate under the demand-shortage economy whereas they do not under a non-demand shortage economy. The stud...
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In this paper we prove that a graduated minimum wage rate can provide a Pareto improvement of an optimal allocation with nonlinear taxation. The reason is that a graduated minimum wage rate makes it harder for the more productive workers to mimic the income of the less productive workers. We also show that in a utilitarian social welfare optimum, the graduated minimum wage rate increases the co...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2005
ISSN: 1556-5068
DOI: 10.2139/ssrn.639741