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Fiscal policy and minimum wage for redistribution: an equivalence result

Author

Listed:
  • Arantza Gorostiaga

    (Universidad del País Vasco)

  • Rubio-Ramírez Juan F.

    (Duke University and Federal Reserve Bank of Atlanta)

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 redistribution policies.

Suggested Citation

  • Arantza Gorostiaga & Rubio-Ramírez Juan F., 2008. "Fiscal policy and minimum wage for redistribution: an equivalence result," Economics Bulletin, AccessEcon, vol. 5(11), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-07e60012
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume5/EB-07E60012A.pdf
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    References listed on IDEAS

    as
    1. Guesnerie, Roger & Roberts, Kevin, 1987. "Minimum wage legislation as a second best policy," European Economic Review, Elsevier, vol. 31(1-2), pages 490-498.
    2. Stephen P. Allen, 1987. "Taxes, Redistribution, and the Minimum Wage: A Theoretical Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(3), pages 477-489.
    3. Arantza Gorostiaga & Juan F Rubio-Ramirez, 2004. "Optimal Minimum Wage," 2004 Meeting Papers 302, Society for Economic Dynamics.
    4. Arantza Gorostiaga & Juan F. Rubio-Ramirez, 2004. "Optimal minimum wage in a competitive economy," FRB Atlanta Working Paper 2004-30, Federal Reserve Bank of Atlanta.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Larrain, Mauricio & Poblete, Joaquin, 2007. "Age-differentiated minimum wages in developing countries," Journal of Development Economics, Elsevier, vol. 84(2), pages 777-797, November.

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    More about this item

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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