Minimum Wage with Optimal Income Taxation

Tomer Blumkin and Efraim Sadka

No 1125, CESifo Working Paper Series from CESifo

Abstract: Minimum wage legislation is a standard policy tool in most countries. However, the overall merits of minimum wage are controversial due to its potential adverse effects on unemployment. In this paper we construct a simple model in which minimum wage plays an important re-distributive role, alongside income taxation, without generating adverse effects on unemployment.

JEL-codes: D60 H20 (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1125

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