Berger, David; Herkenhoff, Kyle; Mongey, Simon - National Bureau of Economic Research - 2022
It has long been argued that a minimum wage could alleviate efficiency losses from monopsony power. In a general … weights the optimal minimum wage is $15, but alternative weights can rationalize anything from $0 to $31. Under only the … efficiency channel, the optimal minimum wage is narrowly around $8, robust to social welfare weights, and generates small welfare …