Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76591 
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper No. 1125
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Minimum wage legislation is a standard policy tool in most countries. However, the overall merits of minimum wage are controversial due to its potential adverse effects on unemployment. In this paper we construct a simple model in which minimum wage plays an important re-distributive role, alongside income taxation, without generating adverse effects on unemployment.
JEL: 
D60
H20
Document Type: 
Working Paper
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