Gavrel, Frédéric; Lebon, Isabelle; Rebière, Thérèse - In: Economics Letters 107 (2010) 1, pp. 30-32
In a matching model in which the job destruction rate and the output are endogenous, we show that the presence of a binding minimum wage prompts firms to choose too risky jobs. Introducing layoff taxes therefore reduces unemployment and improves market efficiency.