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Fiscal policy and minimum wage for redistribution: an equivalence result

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Author Info
Arantza Gorostiaga
Juan Francisco Rubio-Ramírez

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Abstract

In this paper, we derive conditions under which a minimum-wage law combined with anonymous taxes and transfers and an agent-specific tax-transfer scheme are equivalent policies.

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Paper provided by Federal Reserve Bank of Atlanta in its series Working Paper with number 2005-08.

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Date of creation: 2005
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Handle: RePEc:fip:fedawp:2005-08

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  1. Arantza Gorostiaga & Juan Francisco Rubio-Ramírez, 2004. "Optimal minimum wage in a competitive economy," Working Paper 2004-30, Federal Reserve Bank of Atlanta. [Downloadable!]
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  2. Allen, Stephen P, 1987. "Taxes, Redistribution, and the Minimum Wage: A Theoretical Analysis," The Quarterly Journal of Economics, MIT Press, vol. 102(3), pages 477-89, August. [Downloadable!] (restricted)
  3. Guesnerie, Roger & Roberts, Kevin, 1987. "Minimum wage legislation as a second best policy," European Economic Review, Elsevier, vol. 31(1-2), pages 490-498. [Downloadable!] (restricted)
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This page was last updated on 2008-7-28.

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