This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective … incentives and increase job acceptance incentives. We show that sufficiently low minimum wages may do no harm to employment …

This paper provides a theoretical and quantitative analysis of various types of wellknown employment subsidies. Two … important questions are addressed: (i) How should employment subsidies be targeted? (ii) How large should the subsidies be? We …) improve employment and welfare, (b) do not raise earnings inequality and (c) are self-financing. This criterion enables us to …