Deserving poor and the desirability of a minimum wage

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.

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Year of publication:	2018
Authors:	Blumkin, Tomer ; Danziger, Leif
Published in:	IZA Journal of Labor Economics. - Heidelberg : Springer, ISSN 2193-8997. - Vol. 7.2018, 6, p. 1-17
Publisher:	Heidelberg : Springer
Subject:	Deserving poor \| Minimum wage \| Welfare \| Redistribution

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.1186/s40172-018-0066-7 [DOI] 1046042521 [GVK] hdl:10419/195028 [Handle]
Classification:	D6 - Welfare Economics ; H2 - Taxation, Subsidies, and Revenue ; H5 - National Government Expenditures and Related Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10011991983