@inbook{661f0fb0f5a34c27b2923d5a72197b18,
title = "The optimal graduated minimum wage and social welfare",
abstract = "This chapter analyzes the effects of introducing a graduated minimum wage in a model with optimal income taxation in which a government seeks to maximize social welfare. It shows that the optimal graduated minimum wage increases social welfare by increasing the low-productivity workers{\textquoteright} consumption and bringing it closer to the first-best. The chapter also describes how the graduated minimum wage in a social welfare optimum depends on important economy characteristics such as the government{\textquoteright}s revenue needs, the social welfare weight of low-productivity workers, and the numbers and productivities of the different types of workers.",
keywords = "Graduated minimum wage, Optimal income taxation, Social welfare",
author = "Eliav Danziger and Leif Danziger",
note = "Publisher Copyright: {\textcopyright} 2018 by Emerald Publishing Limited All rights of reproduction in any form reserved.",
year = "2018",
month = jan,
day = "1",
doi = "10.1108/S0147-912120180000046002",
language = "English",
series = "Research in Labor Economics",
publisher = "Emerald Group Holdings Ltd.",
pages = "55--72",
booktitle = "Research in Labor Economics",
}
