Searching for the Virtues of the European Model

Author/Editor:

Gilles Saint-Paul

Publication Date:

April 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The distributional effects of the minimum wage are analyzed in a model where skilled and unskilled labor enter the production function. It is argued that distributional goals are best achieved by letting the labor market clear and achieving redistribution through taxes and transfers.

Series:

Working Paper No. 1994/046

Subject:

Income Income inequality Labor Labor markets Minimum wages National accounts Unemployment

Notes:

Also published in Staff Papers, Vol. 41, No. 4, December 1994.

English

Publication Date:

April 1, 1994

ISBN/ISSN:

9781451973853/1018-5941

Stock No:

WPIEA0461994

Pages:

24

Please address any questions about this title to publications@imf.org