unemployment benefits; we find that the MW is preferred by the majority of workers (even when the unemployed receive very generous … unemployment benefits). In the second model, the government engages in redistribution through the public provision of private goods … given generosity of the unemployment benefit scheme, the maximum, politically viable, MW is lower than in the absence of in …

minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

minimum-wage increase raises involuntary unemployment, but also raises skill formation as some individuals avoid unemployment … skill formation outweigh both the public revenue losses from additional unemployment and the utility losses of inefficient … the revenue losses from higher unemployment. We write this condition in terms of measurable sufficient statistics. Our …