Minimum Wage with Optimal Income Taxation
AbstractMinimum wage legislation is a standard policy tool in most countries. However, the overall merits of minimum wage are controversial due to its potential adverse effects on unemployment. In this paper we construct a simple model in which minimum wage plays an important re-distributive role, alongside income taxation, without generating adverse effects on unemployment.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1125.
Date of creation: 2004
Date of revision:
Find related papers by JEL classification:
- D60 - Microeconomics - - Welfare Economics - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
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