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Minimum Wages in the Presence of In-Kind Redistribution

Economides, George - 2017

“blunt instrument” for redistribution. To delve deeper in this issue we build models in which workers are heterogeneous in … unemployment benefits). In the second model, the government engages in redistribution through the public provision of private goods …-kind redistribution, and (iii) the MW institution is politically viable only when there is a limited degree of in-kind redistribution …

Persistent link: https://www.econbiz.de/10012951678

Is a Minimum Wage an Appropriate Instrument for Redistribution?

Gerritsen, Aart - 2014

We analyze the redistributive (dis)advantages of a minimum wage over income taxation in competitive labor markets. A minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low-skilled workers. A simple condition based on three sufficient...

Persistent link: https://www.econbiz.de/10013059059

Minimum Wages as a Redistributive Device in the Long Run

Oikonomidēs, Geōrgios; Moutos, Thomas - 2021

This paper analyzes long run outcomes resulting from adopting a binding minimum wage in a neoclassical model with perfectly competitive labour markets and capital accumulation. The model distinguishes between workers of heterogeneous ability and capitalists who do all the saving, and it entails...

Persistent link: https://www.econbiz.de/10013315566

Minimum Wages and the Labor Market Effects of Immigration

Edo, Anthony - 2017

We exploit the non-linearity in the level of minimum wages across US States created by the coexistence of federal and state regulations to investigate how minimum wages affect the labor market impact of immigration. We find that the effects of immigration on labor market outcomes of native...

Persistent link: https://www.econbiz.de/10012951556

Minimum Wage, Trade and Unemployment in General Equilibrium

Marjit, Sugata - 2020

The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age-old conventional wisdom on its head. This paper demonstrates that this apparently paradoxical result is perfectly plausible in a competitive general equilibrium production...

Persistent link: https://www.econbiz.de/10012835193

Endogenous Monopsony and the Perverse Effect of the Minimum Wage in Small Firms

Danziger, Leif - 2021

The minimum wage rate has been introduced in many countries as a means of alleviating the poverty of the working poor. This paper shows, however, that an imperfectly enforced minimum wage rate causes small firms to face an upward-sloping labor supply schedule. Since this turns these firms into...

Persistent link: https://www.econbiz.de/10013316334

Wage and Employment Effects of Non-Binding Minimum Wages

Dittrich, Marcus - 2010

Common wisdom holds that the introduction of a non-binding minimum wage is irrelevant for actual wages and employment. Empirical and experimental research, however, has shown that the introduction of a minimum wage can raise even those wages that were already above the new minimum wage. In this...

Persistent link: https://www.econbiz.de/10013139416

Minimum Wage Incidence : The Case for Germany

Knabe, Andreas - 2008

Using data from the 2006 wave of the German Socio-Economic Panel (GSOEP), this paper analyzes how a minimum wage affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a statutory minimum wage of EUR 7.50 per hour would cost...

Persistent link: https://www.econbiz.de/10012769311

National Minimum Wage and Employment of Young Workers in the UK

Fidrmuc, Jan - 2013

We analyze the impact of the UK national minimum wage (NMW) on the employment of young workers. The previous literature found little evidence of an adverse impact of the NMW on the UK labor market. We focus on the age-related increases in the NMW at 18 and 22 years of age. Using regression...

Persistent link: https://www.econbiz.de/10013079872

The Price and Employment Response of Firms to the Introduction of Minimum Wages

Link, Sebastian - 2021

This paper studies the price and employment response of firms to the introduction of a nation-wide minimum wage in Germany. In line with previous studies, the estimated employment effect is only modestly negative and statistically insignificant. In contrast, affected firms increased prices much...

Persistent link: https://www.econbiz.de/10013315367