TY  - CHAP
AB  - Abstract This chapter analyzes the effects of introducing a graduated minimum wage in a model with optimal income taxation in which a government seeks to maximize social welfare. It shows that the optimal graduated minimum wage increases social welfare by increasing the low-productivity workers’ consumption and bringing it closer to the first-best. The chapter also describes how the graduated minimum wage in a social welfare optimum depends on important economy characteristics such as the government’s revenue needs, the social welfare weight of low-productivity workers, and the numbers and productivities of the different types of workers.
VL  - 46
SN  - 978-1-78756-462-6, 978-1-78756-461-9/0147-9121
DO  - 10.1108/S0147-912120180000046002
UR  - https://doi.org/10.1108/S0147-912120180000046002
AU  - Danziger Eliav
AU  - Danziger Leif
PY  - 2018
Y1  - 2018/01/01
TI  - The Optimal Graduated Minimum Wage and Social Welfare
T2  - Transitions through the Labor Market
T3  - Research in Labor Economics
PB  - Emerald Publishing Limited
SP  - 55
EP  - 72
Y2  - 2024/04/23
ER  -