Searching for the Virtues of the European Model
24 Pages Posted: 15 Feb 2006
Date Written: April 1994
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.
JEL Classification: E61, J68
Suggested Citation: Suggested Citation