Optimal Taxation and Monopsonistic Labor Market:Does Monopsony Justify the Minimum Wage?

We analyze optimal taxation in an economy with monopsonistic labor markets. Theindividuals, whose only decisions are whether to work, or not, have heterogeneousproductivities and opportunity costs of work. Given its preferences for redistribution, thegovernment, which does not observe the opportunity costs of work, chooses a tax schemeimplementing the second best allocation...

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Year of publication:	2007-07-01
Authors:	Cahuc, Pierre ; Laroque, Guy
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Mindestlohn \| Nachfragemonopol \| labour supply preferences \| Optimale Besteuerung

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Extent:	245760 bytes 26 p. application/pdf
Series:	IZA - Forschungsinstitut zur Zukunft der Arbeit - Discussion Papers IZA Discussion Paper ; No. 2955 (2007)
Type of publication:	Book / Working Paper
Language:	English
Classification:	H31 - Household ; J30 - Wages, Compensation, and Labor Costs. General ; J42 - Monopsony; Segmented Labor Markets ; Pay salaries and social benefits ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005862338