Department of Economics and Business Economics

Deserving poor and the desirability of a minimum wage

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  • Tomer Blumkin, Ben-Gurion University of the Negev, CESifo, IZA
  • ,
  • Leif Danziger

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 languageEnglish
Article number6
JournalIZA Journal of Labor Economics
Publication statusPublished - 1 Dec 2018

    Research areas

  • Deserving poor, Minimum wage, Redistribution, Welfare

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