On the Optimality of a Minimum Wage:New Insights from Optimal Tax Theory

We build a theoretical model to study whether a minimum wage can be welfare-improving if itis implemented in conjunction with an optimized nonlinear income tax. We consider this issuein a framework where search frictions on the labor market generate unemployment. Workersdiffer in productivity...

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Year of publication:	2007-07-01
Authors:	Hungerbühler, Mathias ; Lehmann, Etienne
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Mindestlohn \| Tarifverhandlung \| bargaining \| Bunching \| bunching \| Optimale Besteuerung

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Extent:	424960 bytes 32 p. application/pdf
Series:	IZA - Forschungsinstitut zur Zukunft der Arbeit - Discussion Papers IZA Discussion Paper ; No. 2957 (2007)
Type of publication:	Book / Working Paper
Language:	English
Classification:	H21 - Efficiency; Optimal Taxation ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies ; J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J68 - Public Policy ; Pay salaries and social benefits ; Corporate taxation and accounting. Other aspects ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005862337