Working Paper
Minimum Wage with Optimal Income Taxation
Tomer Blumkin, Efraim Sadka
CESifo, Munich, 2004
CESifo Working Paper No. 1125
CESifo, Munich, 2004
CESifo Working Paper No. 1125
![](https://cesifo.org/DocImg/cesifo1_wp1125.jpg?c=1689236969)
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.
CESifo Category
Public Finance
Public Finance
JEL Classification: D600,H200