Abstract
This paper provides a normative justification for the use of a minimum wage as a redistributive tool in a competitive labor market. We show that a government interested in improving the wellbeing of the deserving poor, while being less concerned with their undeserving counterparts, can use a minimum wage to enhance the efficiency of the tax-and-transfer system in attaining this goal.
Original language | American English |
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Article number | 6 |
Journal | IZA Journal of Labor Economics |
Volume | 7 |
Issue number | 1 |
DOIs | |
State | Published - 1 Dec 2018 |
Keywords
- Deserving poor
- Minimum wage
- Redistribution
- Welfare
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Industrial relations
- Organizational Behavior and Human Resource Management