minimum-wage increase raises involuntary unemployment, but also raises skill formation as some individuals avoid unemployment … skill formation outweigh both the public revenue losses from additional unemployment and the utility losses of inefficient … the revenue losses from higher unemployment. We write this condition in terms of measurable sufficient statistics. Our …

the importance of skills for the entrepreneurs who employ those workers, and in particular on their evolution over time …

We study the Lemons Problem when workers have private information on both their skills and their intrinsic motivation …

minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …