Fiscal policy and minimum wage for redistribution: an equivalence result
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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- Arantza Gorostiaga & Juan Francisco Rubio-Ramírez, 2004. "Optimal minimum wage in a competitive economy," FRB Atlanta Working Paper No. 2004-30, Federal Reserve Bank of Atlanta.
- 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.
- Guesnerie, Roger & Roberts, Kevin, 1987. "Minimum wage legislation as a second best policy," European Economic Review, Elsevier, vol. 31(1-2), pages 490-498.
- Arantza Gorostiaga & Juan F Rubio-Ramirez, 2004. "Optimal Minimum Wage," 2004 Meeting Papers 302, Society for Economic Dynamics.
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