The standard model of optimal minimum wage policy in a perfectly competitive labor market suggests that a positive tax rate on minimum wage income is Pareto inefficient. However, most countries with minimum wage legislation exhibit a positive tax rate on minimum wage income. We solve this...

With its introduction in 2015, the statutory minimum wage in Germany intends to benefit primarily low-wage workers. Thus, this paper aims at estimating the effectiveness of the im- plemented wage floor on gender wage gaps in the lower half of the wage distribution. Using administrative data,...

To the extent minimum-wage regulation is effective in fighting against excessive earnings handicaps of those at the bottom of earnings distribution, it may have the side-effect of worsening their employment prospects. A demand-and-supply interpretation of data on the relative employment rate and...

To the extent minimum-wage regulation is effective in fighting against excessive earnings handicaps of those at the bottom of earnings distribution, it may have the side-effect of worsening their employment prospects. A demand-and-supply interpretation of data on the relative employment rate and...

When minimum wages increase, employers may respond to the regulatory burdens by substituting away from disadvantaged workers. We test this hypothesis using a correspondence study with 35,000 applications around ex-ante uncertain minimum wage increases in three U.S. states. Before the increases,...

This chapter assesses the use of public procurement to enforce labour standards from a competition and State aid perspective, and concentrates on the establishment of contract compliance clauses under the rules of Article 26 of Directive 2004/18/EC and Article 70 of Directive 2014/24/EU and in...

This paper evaluates the consequences of minimum wage (MW) and earned income tax credit (EITC) in a model with heterogeneous costs of investment in human capital. Our model studies the effects of a MW and an EITC on employment, productivity, and total output for two types of groups: those with a...

This paper assesses the magnitude and nature of the gender pay gap in Ireland using the National Employment Survey 2003, an employeremployee matched dataset. The results suggest that while a wage bargaining system centred around social partnership was of benefit to females irrespective of their...

Using linked employer-employee data for Portugal, we explore an amendment to the minimum wage law which increased from 75% to 100% of the full minimum wage applied to employees younger than 18. Our results show a widening of the gender wage gap following the amendment: the wage gap for minors...

This paper assesses the magnitude and nature of the gender pay gap in Ireland using the National Employment Survey 2003, an employeremployee matched dataset. The results suggest that while a wage bargaining system centred around social partnership was of benefit to females irrespective of their...