Slonimczyk, Fabián; Skott, Peter - In: Journal of Economic Behavior & Organization 84 (2012) 1, pp. 245-264
This paper analyzes the effects of the minimum wage on wage inequality, relative employment and over-education. We show that over-education can be generated endogenously and that an increase in the minimum wage can raise both total and low-skill employment, and produce a fall in inequality....