Kumar, Alok - In: Review of Economic Dynamics 11 (2008) 1, pp. 133-154
conducted in an inter-temporal search model in which firms post wages. A (binding) minimum wage provides a lower support for the … distribution of wages. The paper finds that the interaction of these two policy instruments significantly modify labor market … wage dispersion. In contrast, when it is not binding, a lower capital tax may reduce the dispersion in wages. A binding …