We gratefully acknowledge funding from ADR UK (Administrative Data Research UK) and the Economic and Social Research Council (Grant No. ES/T013877/1). The work is based on analysis of the research-ready datasets from the Annual Survey of Hours and Earnings (ASHE) (ONS, 2024a), Business Structure...

In a union of states with partial mobility of households and firms we analyze the setting of minimum wages against the background of unemployment insurance. We find that unemployment insurance is always efficiently organized by decentral decisions. In contrast, for symmetric states only the...