We explore the suitability of the minimum wage as a policy instrument for reducing emerging income inequality created by new technologies and automation. For this, we implement a binding minimum wage in a task-based framework, in which tasks are conducted by machines, low-skill, and high-skill...

Automation transforms the labor market, increases inequality, and thus creates social costs to society. We analyze the favorite level of automation selected in a political process between low-skill and high-skill workers. The selection is implemented by a task-specific tax in a task-based...

Recent evidence suggests that anti-competitive behavior of firms negatively affects workers' real wages. Typically, policy actions relate to antitrust regulation and rarely to measures that curb employers' monopsony power. We show that policymakers who want to raise workers' real wages should...