Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189129
Authors: 
Marceau, Nicolas
Boadway, Robin
Year of Publication: 
1991
Series/Report no.: 
Queen's Economics Department Working Paper No. 805
Abstract: 
The use of unemployment insurance and minimum wages as instruments for redistributing income are analyzed. The government is assumed to be able to implement an optimal income tax in an economy consisting of two ability-types of persons. The effect of introducing a minimum wage which induces involuntary unemployment combined with unemployment insurance is considered. Social welfare can be improved despite the possible revenue costs to the government if the policy causes a self-selection constraint to be weakened by enough. Sufficiency conditions are derived for this to be the case.
Document Type: 
Working Paper

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