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Minimum wages as a redistributive device in the long run

Oikonomidēs, Geōrgios; Moutos, Thomas - 2014

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/10010428828

On the interaction between minimum wage adoption and fiscal redistribution : a theoretical and empirical investigation

Oikonomidēs, Geōrgios; Kammas, Pantelis; Moutos, Thomas - 2020

"blunt instrument" for redistribution. To do so we build a model in which workers are heterogeneous in ability, and the … government engages in redistribution through the public provision of private goods. We show that the MW institution is … politically viable only when there is a limited degree of in-kind redistribution. To examine the empirical relevance of our …

Persistent link: https://www.econbiz.de/10012229263

Is a minimum wage an appropriate instrument for redistribution?

Gerritsen, Aart; Jacobs, Bas - 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/10010234542

Minimum wages in the presence of in-kind redistribution

Oikonomidēs, Geōrgios; Moutos, Thomas - 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/10011669528

Deserving poor and the desirability of minimum wage rules

Blumḳin, Tomer; Danziger, Leif - 2014

In this paper we provide a novel justification for the use of minimum wage rules to supplement the optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage rule can be...

Persistent link: https://www.econbiz.de/10010337632

To redistribute or to predistribute? : the minimum wage versus income taxation when workers differ in both wages and working hours

Gerritsen, Aart - 2023

I consider the case for the minimum wage alongside (optimal) income taxes when workers differ in both wages and working hours, such that a given level of income corresponds to multiple wage rates. The minimum wage is directly targeted at the lowest-wage workers, while income taxes are at most...

Persistent link: https://www.econbiz.de/10014414309

Minimum wage and firm variety

Jha, Priyaranjan; Rodríguez López, Antonio - 2021

Exploiting minimum-wage variation within multi-state commuting zones, we document a negative relationship between minimum wages and firm variety in the U.S. restaurant and retail-trade industries. To explain this finding, we construct a heterogeneous-firm model with a monopsonistic labor market...

Persistent link: https://www.econbiz.de/10012624812

Payroll tax reductions for minimum wage workers : relative labor cost or cash windfall effects?

Cottet, Sophie - 2024

This paper uses administrative employer-employee data to uncover the effects of a large payroll tax reduction for minimum-wage workers in France. Exploiting the change in labor costs both at the job level and at the firm level, I find that the policy spurred an additional 13 percentage points...

Persistent link: https://www.econbiz.de/10014521171

Monopsony power, offshoring, and a European minimum wage

Egger, Hartmut; Kreickemeier, Udo; Wrona, Jens - 2024

This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically competitive labour markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting part of the production abroad reduces local labour...

Persistent link: https://www.econbiz.de/10014467358

Employment and reallocation effects of higher minimum wages

Drechsel-Grau, Moritz - 2023

This paper studies the employment and reallocation effects of minimum wages in Germany in a search-and-matching model with endogenous job search effort and vacancy posting, multiple employment levels, a progressive tax-transfer system, and worker and firm heterogeneity. I find that minimum wages...

Persistent link: https://www.econbiz.de/10014267170