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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
"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
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
"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
“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
"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/10011666043
A popular argument for a federal minimum wage is that it will prevent in-work poverty and reduce income inequality. We examine this assertion for Germany, a welfare state with a relative generous means-tested social minimum and high marginal tax rates. Our analysis is based on a microsimulation...
Persistent link: https://www.econbiz.de/10010234179
A popular argument for a federal minimum wage is that it will prevent in-work poverty and reduce income inequality. We examine this assertion for Germany, a welfare state with a relative generous means-tested social minimum and high marginal tax rates. Our analysis is based on a microsimulation...
Persistent link: https://www.econbiz.de/10010241628
Persistent link: https://www.econbiz.de/10013368764
We suggest that stabilizing the baseline income can make low-wage workers more tolerant towards high income earners. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally sets a baseline pay reducing the risk of...
Persistent link: https://www.econbiz.de/10014266908