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Final published version
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 | English |
|---|---|
| Article number | 6 |
| Journal | IZA Journal of Labor Economics |
| Volume | 7 |
| Issue | 1 |
| DOIs | |
| Publication status | Published - 1 Dec 2018 |
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ID: 137352916