Searching for the Virtues of the European Model
April 1, 1994
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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.
Subject: Income, Income inequality, Labor, Labor markets, Minimum wages, National accounts, Unemployment
Keywords: Europe, full employment, Income, Income inequality, labor market, Labor markets, minimum wage regulation, minimum wage system, Minimum wages, post tax, replacement ratio, Unemployment, unemployment benefit regime, unemployment benefit system, unemployment duration, unemployment rate, unskilled worker, WP
Pages:
24
Volume:
1994
DOI:
Issue:
046
Series:
Working Paper No. 1994/046
Stock No:
WPIEA0461994
ISBN:
9781451973853
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 41, No. 4, December 1994.
