Blumḳin, Tomer; Danziger, Leif - In: IZA Journal of Labor Economics 7 (2018) 6, pp. 1-17
This paper provides a normative justification for the use of a minimum wage as a redistributive tool in a competitive labor market. We show that a government interested in improving the wellbeing of the deserving poor, while being less concerned with their undeserving counterparts, can use a...