The Optimal Graduated Minimum Wage and Social Welfare

Arbeitspapier

This paper 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 paper 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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 6943

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Welfare Economics: General ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Wages, Compensation, and Labor Costs: General
• Thema: graduated minimum wage ; optimal income taxation ; social welfare

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Danziger, Eliav ; Danziger, Leif
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/176962
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ