Minimum wages as a redistributive device in the long run
"This paper analyzes long run outcomes resulting from adopting a binding minimum wage in a neoclassical model with perfectly competitive labour markets and capital accumulation. The model distinguishes between workers of heterogeneous ability and capitalists who do all the saving, and it entail...
| Main Authors: | , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Munich
2014
CESifo |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19115499124919336719-Minimum-wages-as-a-redistribut.htm |
| _version_ | 1771659893528330241 |
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| author | Economides, George Moutos, Thomas |
| author_facet | Economides, George Moutos, Thomas |
| collection | Library items |
| description | "This paper analyzes long run outcomes resulting from adopting a binding minimum wage in a neoclassical model with perfectly competitive labour markets and capital accumulation. The model distinguishes between workers of heterogeneous ability and capitalists who do all the saving, and it entails – relative to the perfectly competitive benchmark - large output and employment losses (among the lowest-ability workers) from the imposition of moderately binding minimum wages. Yet, with linear taxation in place, all employed workers can become better-off provided that the unemployed receive limited welfare support. With progressive taxation in place, the minimum wage may garner political support (i.e. a majority) even when the unemployed receive substantial welfare support despite potential opposition from the capitalists and the unemployed, as well as from the very-high ability workers whose net-of-taxes incomes decline." |
| format | TEXT |
| id | 19115499124919336719_f6a437bd312e43daa311181492fc8b1a |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19115499124919336719_f6a437bd312e43daa311181492fc8b1a |
| is_hierarchy_title | Minimum wages as a redistributive device in the long run |
| language | English |
| physical | 46 p. Digital |
| publishDate | 2014 |
| publisher | Munich CESifo |
| spellingShingle | Economides, George Moutos, Thomas fiscal policy income redistribution minimum wage unemployment Minimum wages as a redistributive device in the long run |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=108632492681 |
| title | Minimum wages as a redistributive device in the long run |
| topic | fiscal policy income redistribution minimum wage unemployment |
| url | https://www.labourline.org/KENTIKA-19115499124919336719-Minimum-wages-as-a-redistribut.htm |