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We explain the public's support for the minimum wage (MW) institution despite economists' warnings that the MW is a "blunt instrument" for redistribution. To do so we build a model in which workers are heterogeneous in ability, and the government engages in redistribution through the public...
Persistent link: https://www.econbiz.de/10012830996
taxation. In addition, the appearance of equilibrium unemployment also provides an incentive for the government to directly tax …
Persistent link: https://www.econbiz.de/10010264504