Minimum wage: Redistributive or discriminatory policy?

Konferenzbeitrag

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 a minimum wage exhibit a positive tax rate for minimum wage income. This paper introduces discrimination of individuals that do not contribute to social welfare, typically individuals that do not participate in the political process, into the standard model. If a minimum wage is introduced for discriminatory purposes, a positive tax rate on minimum wage income can be compatible with optimal government policy. In the empirical part, we show that the approval of discrimination against foreigners in the labor market and the presence of a minimum wage are indeed positively correlated.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Minimum Wage and Short-Time Work ; No. C18-V2

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Wage Level and Structure; Wage Differentials ; Labor Discrimination

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Micheli, Martin
• Ereignis: Veröffentlichung
• (wer): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Kiel und Hamburg
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/145830
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ