Knabe, Andreas; Schöb, Ronnie - CESifo - 2008
affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a … Unemployment Benefits II, do not benefit from a minimum wage at all. Comparing the effects of a minimum wage with different types … employment – depending on the subsidies’ incidence – and income effects. Wage subsidies also allow a more equal income …