Knabe, Andreas; Schöb, Ronnie - In: FinanzArchiv: Public Finance Analysis 65 (2009) 4, pp. 403-441
This paper analyzes the impact of a statutory minimum wage on employment, wage inequality, public expenditures, and … aggregate income in the low-wage sector for two scenarios: a competitive labor market and a monopsonistic labor market. Using … describes the labor market, a statutory minimum wage reduces employment and raises public expenditures. While aggregate income …